Date of Decision:
April 15, 2014
Whether the debtors’ chapter 7 case should be dismissed for abuse under 11 U.S.C. § 707(b)(3)?
The Court granted the United States Trustee’s motion, but converted the case to chapter 13 at the debtors' request rather than dismissing it. Since the debtors had monthly disposable income of $1,165.11 and their liabilities, including their home mortgage debt, were primarily consumer in nature, their chapter 7 case constituted an abuse of the bankruptcy process under the totality of the circumstances provision of 11 U.S.C. § 707(b)(3)(B).
Full Bankruptcy Court Decision: