§ 707(b)(2)

In re Fowler

Debtor filed a chapter 7 bankruptcy complaint, and the United States Trustee ("UST") filed a motion to dismiss the case pursuant to 11 U.S.C. § 707(b)(2) and (b)(3). The issue was whether debtor, for purposes of section 707(b)(2)(A)(ii)(I), could take the ownership deduction specified in the IRS Local Transportation Expense Standards for a car she owned, which was not collateral for any debt.
Ruling: 
Debtor who owned car outright was still allowed to take ownership deduction specified in IRS Local Transportation Expense Standards.
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In re Skaggs

The United States Trustee filed a motion to dismiss the debtors' case pursuant to 11 U.S.C. § 707(b)(2) on the grounds that the filing constituted a substantial abuse of the provisions of chapter 7.
Ruling: 
Case dismissed for substantial abuse due to debtor's excessive monthly income.
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In re Wiggs

The matter was before the court on the motion to dismiss and objection to confirmation brought by the standing chapter 13 trustee. The matter involved debtors who owned two vehicles but did not incur expenses for payment of a note. The trustee objected to the ownership expense for two vehicles for which they had no loan or lease. Debtors relied upon 11 U.S.C. § 1325(b) and the case implicated 11 U.S.C. § 707(b)(2)(A)(B).
Ruling: 
Objection to confirmation was sustained since plan did not provide for full payment of all unsecured debts.
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In re Barraza

A bankruptcy debtor sought chapter 7 bankruptcy relief, but the trustee asserted that the debtor improperly claimed a standard ownership allowance for a vehicle and a deduction from income of repayments of loans from the debtor's 401(k) plans. The trustee moved to dismiss the debtor's chapter 7 case as presumptively abusive under the means test of 11 U.S.C. § 707(b)(2)(A).
Ruling: 
Debtor's chapter 7 case was deemed presumptively abusive since debtor was not entitled to vehicle allowance or loan payment deductions.
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In re Guzman

Movant chapter 13 trustee objected to confirmation of respondent debtor's plan.
Ruling: 
Court overruled trustee's confirmation objection since determination of "amounts reasonably necessary to be expended" for above-median debtors must be based on Form B22C rather than Schedule I and J.
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In re Johns

A means test calculation submitted by bankruptcy debtors indicated that the debtors'monthly disposable income exceeded a statutory amount and thus created a presumption of bankruptcy abuse under 11 U.S.C. § 707(b)(2)(A)(i). The trustee moved to dismiss the debtors'petition based on the presumption of abuse.
Ruling: 
Case was dismissed since potential zero distribution in hypothetical conversion to chapter 13 case did not rebut presumption of abuse of chapter 7.
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In re Renicker

Debtor husband and wife filed a chapter 13 plan proposing to pay what they determined to be all of their disposable income for 60 months. The chapter 13 trustee objected to confirmation of debtors'plan on the grounds that their disposable income was significantly higher than reported.
Ruling: 
Trustee's motion to deny confirmation was sustained since debtors had failed to submit documentation to prove special circumstances under section 707(b)(2).
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In re Walker

Petitioner debtors sought to deduct from their current monthly income ("CMI") under 11 U.S.C. § 707(b)(2)(A)(iii) the payments due on their secured debts despite their surrender of the collateral, a residence and vehicle, securing those debts. Respondent trustee objected.
Ruling: 
Debtors were entitled to deduct from their current monthly income the average payment on debts secured by surrendered collateral.
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In re Hardacre

A bankruptcy debtor proposed a chapter 13 plan that provided no return to her unsecured creditors. The trustee objected to confirmation of the plan on the ground that the debtor impermissibly deducted her mortgage and car loan expenses twice under 11 U.S.C. § 707(b)(2)(A)(i) in calculating her disposable income.
Ruling: 
Plan confirmation was denied since the debtor had made a double deduction for mortgage and car loan expenses in calculating projected disposable income.
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