Skip to main content

§ 707(b)(2)

In re Burbank

Ruling
Debtors entitled to deduct payments on vehicle owned free and clear and mortgage on property intended for surrender.
Procedural posture

The chapter 13 trustee objected to confirmation of the above-median debtors' plan, asserting that the monthly payments proposed under the plan failed to meet the requirements of the means test, and the plan did not provide that all of the debtors' projected disposable income would be applied to plan payments, based on the debtors' deduction of expenses for motor vehicles and real property they would not actually be paying.

ABI Membership is required to access the full summary of In re Burbank Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on February 24, 2009 , LexisNexis #0409-085

In re Thissen

Ruling
Confirmation denied where plan proposed treating creditors who were unsecured due to decrease in value of collateral as secured.
Procedural posture

The chapter 13 trustee objected to confirmation of a chapter 13 plan proposed by debtors, a married couple, on the ground that debtors had miscalculated the amount of disposable income to be paid to unsecured creditors. At issue was the status properly accorded to claims asserted by holders of trust deeds 1 and 2 whose positions had become wholly unsecured by reason of a diminution in value of the collateral, which was debtors' residence.

ABI Membership is required to access the full summary of In re Thissen Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on February 12, 2009 , LexisNexis #0409-012

Blausey v. United States Trustee

Ruling
Bankruptcy court properly dismissed case for abuse after taking private disability insurance benefits proceeds into account as income.
Procedural posture

Appellant debtors challenged the Bankruptcy Court for the Northern District of California's dismissal of their petition for chapter 7 bankruptcy. Appellee was the U.S. Trustee (UST).

ABI Membership is required to access the full summary of Blausey v. United States Trustee Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on January 23, 2009 , LexisNexis #0209-123

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.

ABI Membership is required to access the full summary of In re Styles Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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).

ABI Membership is required to access the full summary of In re Castillo Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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).

ABI Membership is required to access the full summary of Bruner v. Armstrong (In re Armstrong) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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.

ABI Membership is required to access the full summary of In re Pearl Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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

In re Schley

Ruling
Debtor spouse's seasonal employment as teacher did not qualify as "special circumstances" or justify adjustment to projected disposable income calculation.
Procedural posture

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).

ABI Membership is required to access the full summary of In re Schley Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on August 22, 2008 , LexisNexis #0908-086

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.

ABI Membership is required to access the full summary of In re Samson Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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.

ABI Membership is required to access the full summary of Pearson v. Stewart (In re Pearson) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

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