§ 707(b)(2)

In re Siler

Based on a bankruptcy debtor's projected disposable income, the debtor presumptively abused chapter 7 bankruptcy, but the debtor asserted that disallowed expenditures constituted special circumstances to rebut the presumption based on the debtor's retirement plan contributions, a plan loan obligation, and a student loan obligation. The bankruptcy administrator moved to dismiss the debtor's case.
Ruling: 
Debtor's retirement plan contributions and loan obligations did not constitute special circumstances that would rebut the presumption of abuse.
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Consumer case opionion summary, case decided on March 23,2010, LexisNexis #0610-100

In re Harris

The debtors sought confirmation of their first modified chapter 13 plan. The trustee objected to confirmation on the grounds that the plan did not provide for all of the debtors' projected disposable income to be applied to make payments to unsecured creditors in compliance with 11 U.S.C.S. § 1325(b)(1)(B). The trustee's objection related specifically to a deduction taken on line 40 of the means test on Official Bankr. Form 22C.
Ruling: 
Debtor could not claim deduction for support of daughter's attending college.
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Consumer case opionion summary, case decided on October 22,2009, LexisNexis #1109-089

In re Stallings

Debtors filed a petition under chapter 13 and a plan for repaying their creditors. The chapter 13 trustee filed a motion to dismiss the debtors' case, claiming that the debtors did not file their plan in good faith because they claimed monthly expenses on four vehicles which they were not entitled to take.
Ruling: 
Debtor properly claimed deductions in four vehicles which were not grounds for bad faith dismissal.
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Consumer case opionion summary, case decided on May 04,2009, LexisNexis #0709-057

In re Justice

The movant, a creditor, sought dismissal of the debtor's case. The matter was remanded from the district court for the District of Arkansas. The district court ruled that the bankruptcy court was required, when faced with an unrebutted presumption of abuse in the debtor's means test; to dismiss his petition or convert it back to a chapter 13.
Ruling: 
Case ordered reconverted to chapter 13 or dismissed for abuse due to income levels.
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Consumer case opionion summary, case decided on April 15,2009, LexisNexis #0709-018

In re Kafi

In calculating disposable income, a chapter 7 bankruptcy debtor claimed vehicle ownership expense deductions for vehicles for which the debtor made no loan or lease payments. The United States Trustee moved to dismiss the debtor's case, asserting that the claimed expenses were not allowable and that the debtor's proper disposable income created a presumption of chapter 7 bankruptcy abuse under 11 U.S.C.S. § 707(b)(2).
Ruling: 
Debtor could not claim vehicle expense under IRS standards but only actual expenses of vehicles owned free and clear.
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Consumer case opionion summary, case decided on March 12,2009, LexisNexis #0509-126

In re Reyes

The debtors sought confirmation of their proposed chapter 13 plan. The chapter 13 trustee objected to the debtors' calculation under 11 U.S.C.S. § 707(b)(2)(A)(iii) of a secured debt deduction attributable to a junior lien on the debtors' principal residence, which they intended to treat as unsecured and strip in conjunction with confirmation, and the amount of a vehicle ownership allowance claimed under the I.R.S.'s local standards.
Ruling: 
Debtor could not deduct secured debt payments on vehicle intended for surrender.
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Consumer case opionion summary, case decided on February 26,2009, LexisNexis #0409-084

In re Burbank

The chapter 13 trustee objected to confirmation of the above-median debtors' plan, asserting that the monthly payments proposed under the plan failed to meet the requirements of the means test, and the plan did not provide that all of the debtors' projected disposable income would be applied to plan payments, based on the debtors' deduction of expenses for motor vehicles and real property they would not actually be paying.
Ruling: 
Debtors entitled to deduct payments on vehicle owned free and clear and mortgage on property intended for surrender.
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Consumer case opionion summary, case decided on February 24,2009, LexisNexis #0409-085

In re Thissen

The chapter 13 trustee objected to confirmation of a chapter 13 plan proposed by debtors, a married couple, on the ground that debtors had miscalculated the amount of disposable income to be paid to unsecured creditors. At issue was the status properly accorded to claims asserted by holders of trust deeds 1 and 2 whose positions had become wholly unsecured by reason of a diminution in value of the collateral, which was debtors' residence.
Ruling: 
Confirmation denied where plan proposed treating creditors who were unsecured due to decrease in value of collateral as secured.
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Consumer case opionion summary, case decided on February 12,2009, LexisNexis #0409-012

Blausey v. United States Trustee

Appellant debtors challenged the Bankruptcy Court for the Northern District of California's dismissal of their petition for chapter 7 bankruptcy. Appellee was the U.S. Trustee (UST).
Ruling: 
Bankruptcy court properly dismissed case for abuse after taking private disability insurance benefits proceeds into account as income.
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Court: 9th Circuit ( ) [ Circuit Court ]
Consumer case opionion summary, case decided on January 23,2009, LexisNexis #0209-123

In re Styles

In calculating expenses for purposes of proposing a plan, a bankruptcy debtor claimed operating and ownership expenses for two vehicles. The bankruptcy trustee moved to deny confirmation of the debtor's plan on the ground that the single debtor was not entitled to claim expenses for more than one vehicle.
Ruling: 
Single debtor could claim expense deductions for more than one motor vehicle.
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Consumer case opionion summary, case decided on November 21,2008, LexisNexis #0209-015

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