§ 707(b)(2)

In re Haar

The United States Trustee filed a motion to dismiss chapter 7 debtors'case pursuant to 11 U.S.C. § 707(b)(2).
Ruling: 
Inclusion of mortgage payments on property to be surrendered in means test was appropriate and not grounds for substantial abuse dismissal.
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In re Harwick

The United States Trustee filed a motion to dismiss chapter 7 debtors'case pursuant to 11 U.S.C. § 707(b)(2).
Ruling: 
Means test for above median debtors is to be applied to circumstances on petition date and not to possible postpetition developments.
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In re Zak

A United States Trustee asserted that bankruptcy debtors, in calculating their monthly disposable income, improperly claimed deductions for mortgage debt secured by realty upon which a mortgagee previously foreclosed, and for ownership/lease expenses for vehicles which the debtors owned free and clear. The trustee moved to dismiss the case based on a presumption of abuse under 11 U.S.C. § 707(b)(2)(a)(i).
Ruling: 
No presumption of abuse existed where debtor's deductions were properly claimed and disposable income was a negative figure.
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In re Tuss

Pending in the chapter 13 bankruptcy was confirmation of debtor's chapter 13 plan and the trustee's objections thereto based upon the "disposable income" test of 11 U.S.C. § 1325(b)(1)(B) and , by reference, 11 U.S.C. § 707(b)(2). The trustee objected that debtor's food, clothing, and personal care expenses exceeded the local standards issued by the IRS.
Ruling: 
Unnecessary fast food and restaurant expenses caused debtor's plan to fail disposable income test.
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In re Crews

The chapter 13 trustee objected, pursuant to 11 U.S.C. § 1325(b)(1)(B), to confirmation of the debtors'proposed plan on the ground that it did not apply their projected disposable income to make payments to unsecured creditors.
Ruling: 
Car payments not required for debtors to claim ownership allowance in chapter 13 plan.
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In re Randle

The U.S. Trustee moved for an order dismissing debtor's chapter 7 bankruptcy filing pursuant to 11 U.S.C. § 707(b)(1) as an abuse of the provisions of chapter 7 on a claim that debtor's income calculated under the "means test" in section 707(b)(2) was high enough to create a presumption of abuse. At issue was whether section 707(b)(2)(A)(iii) permitted debtor to deduct installment payments due on secured debt that she intended to surrender.
Ruling: 
Debtor could deduct current mortgage payment on property to be surrendered in calculating disposable income under means test.
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In re Grunert

Chapter 13 debtors were above-median debtors who owned two vehicles that had no liens or lease obligations on them. On Form B22C, debtors deducted $471 and $332, respectively, for the Local Standards: transportation ownership/lease expense for their vehicles. A creditor filed an objection to confirmation of debtors'plan, arguing debtors were not allowed to take an ownership/lease expense deduction on any vehicle that was owned free and clear.
Ruling: 
Car payments are not a prerequisite for the ownership deduction.
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In re Harwick

The United States Trustee ("UST") moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b) on the grounds that the filing constituted a substantial abuse of the provisions of chapter 7.
Ruling: 
Debtor entitled to claim standard amount for vehicle owner expense.
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In re Mayer

The standing trustee objected to confirmation of three chapter 13 plans. At issue was whether the amount sought to be paid as fees to counsel for the debtors, which fees were higher than the "presumptive" amount previously approved by the court, was properly charged and the impact on that determination of changes in counsel's responsibilities resulting from enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").
Ruling: 
Increased workload under BAPCPA justified higher attorneys'fees.
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In re Thompson

The United States Trustee filed a motion to dismiss debtors' chapter 7 bankruptcy for abuse under 11 U.S.C. § 707(b)(1). At issue was whether payments on the debtor husband's 401(k) loan could be used to reduce debtors'current monthly income.
Ruling: 
Payments on 401(k) loan were on account of secured debt and did not constitute abuse.
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