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§ 707(b)(2)(A)

In re Styles

Ruling
Single debtor could claim expense deductions for more than one motor vehicle.
Procedural posture

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.

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Consumer opinion summary, case decided on November 21, 2008 , LexisNexis #0209-015

In re Castillo

Ruling
Court utilized "snapshot" approach to determine presumption of abuse did not arise in debtor's case.
Procedural posture

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).

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Consumer opinion summary, case decided on October 10, 2008 , LexisNexis #1208-020

Bruner v. Armstrong (In re Armstrong)

Ruling
Above-median debtors entitled to claim monthly vehicle expense on two cars, one of which was owned free and clear.
Procedural posture

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).

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Consumer opinion summary, case decided on September 24, 2008 , LexisNexis #1108-084

In re Pearl

Ruling
Debtor allowed to claim ownership expense on second vehicle owned free and clear.
Procedural posture

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.

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Consumer opinion summary, case decided on September 10, 2008 , LexisNexis #1208-047

In re Samson

Ruling
Payments on 401(k) loan couldnot be deducted as secured debt obligations.
Procedural posture

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.

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Consumer opinion summary, case decided on July 30, 2008 , LexisNexis #0908-008

Pearson v. Stewart (In re Pearson)

Ruling
Bankruptcy court erred in denying debtor's ownership expense on vehicle owned free and clear.
Procedural posture

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.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on July 28, 2008 , LexisNexis #0808-081

In re Smith

Ruling
401(k) plan loans were not secured debts for which repayment was required or special circumstances.
Procedural posture

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.

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Consumer opinion summary, case decided on June 20, 2008 , LexisNexis #0708-123

In re Watkins

Ruling
Debtor not entitled to standard vehicle ownership expense deduction for vehicles owned free and clear.
Procedural posture

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.

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Consumer opinion summary, case decided on June 18, 2008 , LexisNexis #0708-124

Hildebrand v. Kimbro (In re Kimbro)

Ruling
Bankruptcy court properly allowed debtors to deduct vehicle ownership expense for unencumbered vehicle.
Procedural posture

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).

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on June 12, 2008 , LexisNexis #0708-050

In re Smale

Ruling
Payments on property to be surrendered could be deducted in calculating monthly disposable income.
Procedural posture

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.

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Consumer opinion summary, case decided on June 09, 2008 , LexisNexis #0708-051