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§ 707(b)(2)

In re Leary

Ruling
Ownership expense deduction for vehicle owned free and clear was proper but deduction for expenses of real property intended for surrender was not.
Procedural posture

In determining their current monthly income, bankruptcy debtors claimed deductions from income for secured real property interests which they intended to surrender and a transportation ownership expense for a vehicle which the debtors owned free of any debt. In order to determine whether a presumption of bankruptcy abuse applied, the bankruptcy court considered the validity of the debtors' claimed deductions under 11 U.S.C.S. § 707(b)(2).

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Consumer opinion summary, case decided on April 17, 2008 , LexisNexis #0508-084

In re Crego

Ruling
Debtors could claim expenses of maintaining separate households as "special circumstances."
Procedural posture

Debtors, a husband and wife, filed a joint petition under chapter 7 of the Bankruptcy Code but converted their case to one under chapter 13 after the United States Trustee moved to dismiss their case as an abuse of the provisions of chapter 7. A chapter 13 trustee was appointed to represent the bankruptcy estate, and he filed an objection to the debtors' chapter 13 plan.

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Consumer opinion summary, case decided on April 02, 2008 , LexisNexis #0408-119

In re Anderson

Ruling
Debtor properly deducted both secured debt on collateral to be surrendered and authorized amound for leased vehicle in calculating projected disposable income.
Procedural posture

A creditor of chapter 13 debtors objected to the confirmation of their plan.

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Consumer opinion summary, case decided on March 21, 2008 , LexisNexis #0408-051

Babin v. Wilson (In re Wilson)

Ruling
Bankruptcy court erred in allowing full vehicle ownership expense deduction where debtors owned vehicle free and clear.
Procedural posture

Appellant chapter 13 Trustee challenged a decision of the United States Bankruptcy Court for the Western District of Arkansas which held that, in determining allowable expenses under 11 U.S.C.S. § 707(b), appellee debtors could claim a vehicle ownership expense deduction even though they owned the car outright.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on March 14, 2008 , LexisNexis #0408-013

In re Wagner

Ruling
Student loan debts were not special circumstances that would rebut presumption of abuse.
Procedural posture

The debtors filed for relief under chapter 7 of the Bankruptcy Code. A U.S. Trustee filed a motion to dismiss for abuse pursuant to 11 U.S.C.S. § 707(b)(2) and (3).

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Consumer opinion summary, case decided on March 14, 2008 , LexisNexis #0408-118

In re Roberts

Ruling
Debtor could take transportation ownership expense on vehicle owned free and clear.
Procedural posture

A bankruptcy debtor with above-median income proposed a chapter 13 plan which claimed a standard deduction from disposable income for transportation ownership expense. The trustee verbally objected to the deduction on the ground that the debtor had no vehicle loan or lease payment, and the debtor moved for a determination of the applicable transportation ownership expense.

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Consumer opinion summary, case decided on February 28, 2008 , LexisNexis #0408-014

In re Davis

Ruling
Debtor could claim deduction for operating expenses debtor was paying on vehicle debtor did not own.
Procedural posture

The debtor moved for confirmation of her proposed chapter 13 plan. The chapter 13 Trustee objected to confirmation, arguing that the debtor was not entitled to claim the ownership expense for a vehicle that she owned free and clear of liens and made no "ownership" payment on the vehicle. The trustee also asserted that the debtor was not entitled to claim the operating expense for two vehicles because the debtor only owned one vehicle.

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Consumer opinion summary, case decided on February 26, 2008 , LexisNexis #0308-123

In re Beck

Ruling
Debtors could deduct secured debt payments in means test despite actual or intended surrender of collateral.
Procedural posture

In two separate cases, the debtors filed for relief under chapter 7 of the United States Bankruptcy Code. The United States Trustee filed motions to dismiss the petitions pursuant to 11 U.S.C. § 707(b)(2).

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Consumer opinion summary, case decided on January 23, 2008 , LexisNexis #0208-119

In re Naut

Ruling
Case ordered dismissed or converted as debtor could not deduct payments on property intended for surrender.
Procedural posture

The United States Trustee filed a motion to dismiss a chapter 7 debtor's case pursuant to 11 U.S.C. § 707(b).

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Consumer opinion summary, case decided on January 22, 2008 , LexisNexis #0208-120

In re Herbord

Ruling
"Old car" expense set forth in IRS manual was not deductible from disposable income calculation.
Procedural posture

Bankruptcy debtors who were above-median income debtors calculated their disposable income by deducting vehicle operation and ownership expenses, and also "old car" operating expenses for vehicles over six years old. The bankruptcy trustee asserted that the "old car" expenses were not deductible and objected to confirmation of the debtors' plans on the ground that not all disposable income was applied to pay creditors.

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Consumer opinion summary, case decided on January 14, 2008 , LexisNexis #0308014