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§ 707(b)(3)

In re Sandifer

Ruling
Filing by above median debtors living frugally in order to continue funding retirement accounts was not abusive.
Procedural posture

The U.S. Trustee asked the court to dismiss the chapter 7 case filed by debtors, a married couple, on the ground that debtors, by continuing to fund retirement accounts, had shown that their chapter 7 filing was abusive within the meaning of 11 U.S.C.S. 707(b)(3)(B).

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Consumer opinion summary, case decided on April 14, 2008 , LexisNexis #0608-018

In re Eckard

Ruling
Case ordered dismissed or converted due to debtor's abuse of bankruptcy system to pay for non-essential items at expense of unsecured creditors.
Procedural posture

The United States Trustee filed a motion to dismiss chapter 7 debtors' bankruptcy case under 11 U.S.C.S. § 707(b)(3).

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Consumer opinion summary, case decided on March 31, 2008 , LexisNexis #0508-048

In re Walker

Ruling
Case ordered converted or dismissed on grounds of abuse where proposed budget allocated excessive amounts for support of debtors' adult children.
Procedural posture

The United States Trustee filed a motion to dismiss a chapter 7 debtors' case for abuse pursuant to 11 U.S.C.S. § 707(b)(3).

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Consumer opinion summary, case decided on March 05, 2008 , LexisNexis #0408-120

In re Baum

Ruling
Excessive online gambling debts were not indicative of bad faith.
Procedural posture

The U.S. Trustee moved to dismiss a bankruptcy debtor's case for abuse of chapter 7 on the ground that gambling debts were the decisive factor that pushed the debtor to seek bankruptcy protection, and thus the bankruptcy was filed in bad faith and under circumstances indicating abuse within the meaning of 11 U.S.C.S. § 707(b)(3)(A), (B).

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Consumer opinion summary, case decided on February 29, 2008 , LexisNexis #0408-015

In re Wallace

Ruling
Bad faith dismissal not warranted where debtors who lived lavish lifestyle absent concealment or intentional avoidance of single large debt.
Procedural posture

The U.S. Trustee sought a dismissal of the debtors' chapter 7 bankruptcy case pursuant to 11 U.S.C. § 707(b)(3) on the ground that it would be an abuse of the Bankruptcy Code to allow the debtors to remain in chapter 7 and to grant them a discharge.

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Consumer opinion summary, case decided on November 05, 2007 , LexisNexis #1207-052

In re Nolen

Ruling
Extension of time for trustee to file motion to dismiss for presumption of abuse denied.
Procedural posture

A debtor filed a voluntary petition for relief under chapter 7. A United States trustee filed a motion for an extension of time in which to file a motion to dismiss under 11 U.S.C. § 707(b)(3). The court held a hearing and issued findings and conclusions.

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Consumer opinion summary, case decided on October 29, 2007 , LexisNexis #1207-053

In re Sale

Ruling
Debtor could not claim vehicle expense where loan payments were made by non-debtor spouse.
Procedural posture

The chapter 7 trustee filed a motion to dismiss the debtor's case pursuant to 11 U.S.C. § 707(b)(2), in the alternative, pursuant to 11 U.S.C. § 707(b)(3). The trustee asserted that the debtor improperly claimed the transportation ownership expense on lines 23 and 24 of Official Bankr. Form B22A, and also deducted the monthly payment on the vehicle by including it in the Marital Adjustment on line 17 of the form.

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Consumer opinion summary, case decided on October 15, 2007 , LexisNexis #1107-053

In re Hoelzel

Ruling
Chapter 7 case ordered converted to chapter 13 or converted on grounds of abuse where debtors spent tax refund on personal items and sought to maintain expensive home at expense of unsecured creditors.
Procedural posture

United States Trustee filed a motion to dismiss a chapter 7 debtors' case pursuant to 11 U.S.C. § 707(b)(3).

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Consumer opinion summary, case decided on September 27, 2007 , LexisNexis #1207-015

In re Byrne

Ruling
Trustee could proceed with bad faith dismissal regardless of earlier determination that there was no presumption of abuse.
Procedural posture

Movant, the U.S. Trustee ("UST"), sought dismissal of debtor's case per 11 U.S.C. § 707(b)(3). The motion was opposed by creditor, a bank, and by debtor. At issue was whether the UST was required to file a statement within 10 days of the first meeting of creditors stating whether the case was presumed to be an abuse under section 707(b), as required by 11 U.S.C. § 704(b)(1), prior to filing a motion to dismiss the case under 11 U.S.C. § 707(b)(3).

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Consumer opinion summary, case decided on September 24, 2007 , LexisNexis #1007-122

In re Bender

Ruling
Case ordered converted or dismissed where debtors could fund plan with reductions in charitable contributions and 401(k) loan payments.
Procedural posture

The matter was before the court on the trustee's motion to dismiss debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b)(3).

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opinion summary, case decided on September 05, 2007 , LexisNexis #1007-008