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§ 707(b)(2)

In re Megginson

Ruling
Debtor entitled to deduct full IRS transportation expense despite lack of car payments
Procedural posture

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).

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Consumer opinion summary, case decided on September 05, 2007 , LexisNexis #1007-118

In re McDevitt

Ruling
Above median debtors' proposed amended plan confirmed over creditor's objection to deductions for secured debt payments on residence and boat.
Procedural posture

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).

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Consumer opinion summary, case decided on August 28, 2007 , LexisNexis #1007-052

In re Vaccariello

Ruling
Nondischargeable student loans did not create "special circumstances" that would rebut presumption of abuse.
Procedural posture

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.

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Consumer opinion summary, case decided on August 22, 2007 , LexisNexis #1007-119

In re Morgan

Ruling
Above-median debtor could take mortgage-rent expense on Form B22C despite being rent- free.
Procedural posture

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").

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opinion summary, case decided on August 08, 2007 , LexisNexis #0907-086

In re Wilson

Ruling
Above-median debtors could dedcut ownership expsenses on Form B22C for vehicles owned free and clear.
Procedural posture

A chapter 13 trustee filed a timely objection to confirmation of the plan proposed by debtors, a married couple who had filed a chapter 13 proceeding and who were "above- median" debtors for purposes of 11 U.S.C. § 707(b)(2)(A)(ii)(I). At issue was whether debtors were entitled to deduct certain standard vehicle ownership expenses on Official Bankr. Form B22C despite the fact that debtors owned both vehicles free and clear.

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opinion summary, case decided on July 30, 2007 , LexisNexis #0807-120

In re Pfahler

Ruling
Case ordered dismissed or converted as payments to debtor's adult son could be used to fund chapter 13 plan.
Procedural posture

A debtor filed a voluntary petition under chapter 7. The United States Trustee ("UST") filed a motion to dismiss the debtor's case for abuse under 11 U.S.C. § 707(b)(2) and (b)(3). The debtor filed an objection to the trustee's motion.

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opinion summary, case decided on July 26, 2007 , LexisNexis #0807-118

In re Whitaker

Ruling
Voluntary 401(k) plan payments are not deductible under means test.
Procedural posture

The United States trustee moved to dismiss the debtor's chapter 7 petition for abuse, pursuant to 11 U.S.C. § 707(b)(2) and (b)(3), and the debtor objected. The trustee argued that the deduction for loan payments to the debtor's 26 U.S.C. § 401(k) plan were improper under the means test and, if those payments were not included as a deduction, a presumption of abuse arose under section 707(b)(2).

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opinion summary, case decided on July 25, 2007 , LexisNexis #0807-119

Randle v. Neary (In re Randle)

Ruling
Debtor could deduct mortgage payments from current monthly income regardless of intent to surrender colllateral.
Procedural posture

Defendant bankruptcy trustee sought review of a decision from the bankruptcy court, which denied the trustee's motion to dismiss plaintiff debtor's petition under 11 U.S.C. § 707(b)(2).

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opinion summary, case decided on July 20, 2007 , LexisNexis #0807-117

In re Benedetti

Ruling
Debtor allowed to deduct payments on property intended for surrender in means test calculation.
Procedural posture

Chapter 7 debtor was a single woman who listed two leased vehicles on the date of her petition but subsequently surrendered one of the vehicles. The United States Trustee moved to dismiss the chapter 7 case as presumptively abusive pursuant to 11 U.S.C. § 707(b)(2).

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opinion summary, case decided on July 13, 2007 , LexisNexis #0907-010

In re Edmondson

Ruling
Mortgage payment on rental property which debtor planned to surrender could not be included in calculation of projected disposable income.
Procedural posture

The debtors moved for confirmation of their chapter 13 plan. Creditor filed an objection.

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opinion summary, case decided on July 11, 2007 , LexisNexis #0907-050