§ 707(b)(2)

In re Hale

Debtors, a husband and wife, filed a joint petition for relief under chapter 7, listing primarily consumer debts. The United States Trustee ("UST") filed a motion to dismiss the debtors'action, pursuant to 11 U.S.C. § 707(b)(2) and (3), claiming that the debtors were ineligible for relief under chapter 7.
Ruling: 
Correction of debtors' overstatement of tax liability resulted in dismissal pursuant to presumption of abuse.
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Consumer case opionion summary, case decided on October 10,2007, LexisNexis #1107-083

In re Camacho

The debtors filed for relief under chapter 7. The United States Trustee sought dismissal of the case for abuse under 11 U.S.C. § 707(b)(2), contending that the debtors could not deduct monthly car ownership allowances for two cars that they owned when one of the cars was unencumbered.
Ruling: 
Above-median debtors could claim vehicle ownership expense for two cars even though one car was unencumbered.
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Consumer case opionion summary, case decided on October 04,2007, LexisNexis #1107-081

In re Hayes

Bankruptcy debtors'schedules indicated secured mortgage debt and the debtors included mortgage payments in their current monthly expenses, but the U.S. Trustee asserted that the mortgage payments were not expenses because the debtors intended to surrender the mortgaged property. The trustee moved to dismiss the debtors'case based on a presumption of bankruptcy abuse under 11 U.S.C. § 707(b)(2).
Ruling: 
Mortgage payments scheduled within 60 months postpetition could be claimed as expenses regardless of intent to surrender.
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Consumer case opionion summary, case decided on September 26,2007, LexisNexis #1007-120

In re Hansen

A debtor filed for relief under chapter 7. A United States Trustee filed a motion to dismiss the petition alleging that the debtor's petition constituted abuse under the standards set forth in 11 U.S.C. § 707(b)(2).
Ruling: 
Debtor could dedcut monthly payments on secured debts regardless of intent to surrender.
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Consumer case opionion summary, case decided on September 20,2007, LexisNexis #1207-082

In re Lewis

Debtors, a husband and wife, filed a petition under chapter 7, and the United States Trustee ("UST") filed a motion to dismiss the petition, pursuant to 11 U.S.C. § 707(b)(2) and (3), alleging abuse.
Ruling: 
Case ordered converted or dismissed as debtors did not meet requirements for chapter 7 once improper deductions for 401(k) loan payments were eliminated.
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Consumer case opionion summary, case decided on September 17,2007, LexisNexis #1007-086

In re Bishop

Debtors filed for relief under chapter 7. A chapter 7 trustee filed a motion to dismiss for abuse, pursuant to 11 U.S.C. § 707(b)(2), or alternatively, because the debtors' income exceeded the maximum allowed and that the presumption of abuse arose.
Ruling: 
Debtors ordered to amend schedules to reflect actual tax liability rather than pre-exemption withholding.
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Consumer case opionion summary, case decided on September 17,2007, LexisNexis #1007-087

In re Megginson

The U.S. Trustee filed a motion to dismiss an above-median income debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b)(2).
Ruling: 
Debtor entitled to deduct full IRS transportation expense despite lack of car payments
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Consumer case opionion summary, case decided on September 05,2007, LexisNexis #1007-118

In re McDevitt

The debtors filed for relief under chapter 13 and filed an amended chapter 13 plan. The general unsecured creditor objected to the debtor's proposed amended plan, alleging that the plan did not commit all projected disposable income to the unsecured creditors. The creditor claimed the plan violated 11 U.S.C. § 707(b)(2)(A)(ii)(I), a requisite for confirmation under 11 U.S.C. § 1325(b)(3).
Ruling: 
Above median debtors' proposed amended plan confirmed over creditor's objection to deductions for secured debt payments on residence and boat.
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Consumer case opionion summary, case decided on August 28,2007, LexisNexis #1007-052

In re Vaccariello

The United States Trustee ("UST") moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b)(2) based on the presumption of abuse of the provisions of chapter 7. In what was a matter of first impression for the court, the primary issue was whether the debtors'student loans constituted "special circumstances" to overcome the presumption of abuse in the means test.
Ruling: 
Nondischargeable student loans did not create "special circumstances" that would rebut presumption of abuse.
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Consumer case opionion summary, case decided on August 22,2007, LexisNexis #1007-119

In re Morgan

After debtor deducted the "Local Standard" amount established by the IRS on account of mortgage/rent expense and referenced in 11 U.S.C. § 707(b)(2)(A)(ii)(I), the trustee objected to confirmation on the ground that no deduction was properly taken because debtor was living rent-free. At issue was the proper reading of section 707 as enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").
Ruling: 
Above-median debtor could take mortgage-rent expense on Form B22C despite being rent- free.
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