§ 707(b)(2)

In re Castillo

The United States trustee moved to dismiss the debtors' chapter 7 bankruptcy petition pursuant to 11 U.S.C.S. § 707(b)(2) and (3). The bankruptcy court bifurcated the motion to first consider dismissal pursuant to § 707(b)(2).
Ruling: 
Court utilized "snapshot" approach to determine presumption of abuse did not arise in debtor's case.
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Consumer case opionion summary, case decided on October 10,2008, LexisNexis #1208-020

Bruner v. Armstrong (In re Armstrong)

Plaintiff trustee filed an action against defendant chapter 13 debtors, seeking review of a decision by the Bankruptcy Court for the Eastern District of Washington which confirmed a plan the debtors proposed for repaying their creditors. The trustee claimed that the plan should not have been confirmed because it did not require the debtors to commit all their disposable income to the plan, as required by 11 U.S.C.S. § 1325(b)(1)(B).
Ruling: 
Above-median debtors entitled to claim monthly vehicle expense on two cars, one of which was owned free and clear.
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Consumer case opionion summary, case decided on September 24,2008, LexisNexis #1108-084

In re Pearl

Debtors filed a petition under chapter 13 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. The trustee filed an objection to a plan the debtors proposed for repaying their creditors.
Ruling: 
Debtor allowed to claim ownership expense on second vehicle owned free and clear.
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Consumer case opionion summary, case decided on September 10,2008, LexisNexis #1208-047

In re Schley

Debtors, a married couple, proposed a chapter 13 plan under which they had adjusted their projected disposal income to reflect the fact that the wife was a school system employee who received a salary for only nine months of the year. The chapter 13 trustee objected to confirmation on that basis. At issue was the facts constituted "special circumstances" for purposes of 11 U.S.C.S. § 707(b)(2)(B).
Ruling: 
Debtor spouse's seasonal employment as teacher did not qualify as "special circumstances" or justify adjustment to projected disposable income calculation.
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Consumer case opionion summary, case decided on August 22,2008, LexisNexis #0908-086

In re Samson

The United States Trustee (UST) moved to dismiss the debtors' chapter 7 case pursuant to 11 U.S.C.S. §§ 707(b)(2) and 707(b)(3) on the grounds that the filing constituted an abuse of the provisions of chapter 7.
Ruling: 
Payments on 401(k) loan couldnot be deducted as secured debt obligations.
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Consumer case opionion summary, case decided on July 30,2008, LexisNexis #0908-008

Pearson v. Stewart (In re Pearson)

Appellants, chapter 13 debtors, challenged an order of the Bankruptcy Court for the District of Wyoming confirming debtors' third amended plan on the ground that the bankruptcy court had erred in denying confirmation of their prior proposed plan in which they claimed vehicle acquisition allowances for two vehicles. The proper interpretation and application of the "means test" in 11 U.S.C.S. § 707(b)(2)(A)(ii)(I) was at issue.
Ruling: 
Bankruptcy court erred in denying debtor's ownership expense on vehicle owned free and clear.
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Consumer case opionion summary, case decided on July 28,2008, LexisNexis #0808-081

In re Smith

The U.S. Trustee filed a motion to dismiss debtors' chapter 7 case pursuant to 11 U.S.C.S. §§ 707(b)(1) and (b)(2), asserting that one debtor's loans from his retirement savings plan were not secured debts or a special circumstance so as to defeat the presumption of abuse that otherwise arose.
Ruling: 
401(k) plan loans were not secured debts for which repayment was required or special circumstances.
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Consumer case opionion summary, case decided on June 20,2008, LexisNexis #0708-123

In re Watkins

The United States Trustee asserted that bankruptcy debtors, in calculating their monthly disposable income, improperly claimed vehicle ownership expenses for vehicles which they owned free and clear of liens, and expenses for repayment of a loan from an employee retirement plan. The Trustee moved to dismiss the debtors' case under 11 U.S.C.S. § 707(b)(2)(A) based on the presumption of abuse of chapter 7 bankruptcy.
Ruling: 
Debtor not entitled to standard vehicle ownership expense deduction for vehicles owned free and clear.
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Consumer case opionion summary, case decided on June 18,2008, LexisNexis #0708-124

Hildebrand v. Kimbro (In re Kimbro)

Appellant trustee sought review of the judgment of the bankruptcy court, which rejected the trustee's objection under 11 U.S.C.S. § 1325 to the chapter 13 plan and allowed appellee debtors to deduct vehicle ownership expense amounts in the applicable local transportation standards, pursuant to 11 U.S.C.S. § 707(b)(2)(A)(ii)(I).
Ruling: 
Bankruptcy court properly allowed debtors to deduct vehicle ownership expense for unencumbered vehicle.
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Consumer case opionion summary, case decided on June 12,2008, LexisNexis #0708-050

In re Smale

The trustee moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C.S. § 707(b)(2). The issue was whether the debtor could deduct, from his monthly disposable income, scheduled monthly payments for three of the four motor vehicles which he owned, but which he intended to surrender, or whether the presumption of abuse arose because the payments were not deductible.
Ruling: 
Payments on property to be surrendered could be deducted in calculating monthly disposable income.
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Consumer case opionion summary, case decided on June 09,2008, LexisNexis #0708-051

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