Cortez v. Cortez (In re Cortez)
Jul
20
2006
Ruling
Court ruled that in determining whether substantial abuse of chapter 7 has occurred, postpetition events should be considered.
Procedural posture
Appellant debtors filed a chapter 7 bankruptcy petition. In considering appellee trustee's motion to dismiss for substantial abuse under 11 U.S.C. § 707(b), the bankruptcy court determined that postpetition events should not be considered. The District Court for the Northern District of Texas reversed, holding that such circumstances should be considered. The debtors appealed.
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