Bankr. No.:
02-10226
Chapter:
7
Date of Decision:
January 31, 2003
Issue:
Whether this case should be dismissed for substantial abuse where Debtor admitted she had $350 in monthly disposable income but where she argued that this was not enough to fund a Chapter 13 plan and where she argued she was still liable for a debt assumed by her former husband?
Ruling:
Debtor was allowed to convert her case to Chapter 13 to avoid dismissal for substantial abuse under ยง 727(b). Debtor had $387 in disposable income that would fund a meaningful Chapter 13 plan. Moreover, she could move to modify her plan if and when she had to step in and make payments on a mobile home debt that her former husband had assumed.
Full Bankruptcy Court Decision: