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In re Dudley (Case No. 08-71561) 6/15/2009

The United States Trustee filed a motion to dismiss this chapter 7 case pursuant to section 707(b)(1).  The debtors argued that 707(b) does not apply to cases converted to chapter 7 from another chapter of the Bankruptcy Code and moved for summary judgment on that ground.  The Court granted the debtors' motion for summary judgment and held that the plain meaning rule dictated that 707(b) applies only to cases filed under chapter 7 and that cases converted to chapter 7 from another chapter do not fall within the scope of 707(b). Literal application of the statutory language did not result in an outcome that could be characterized as absurd and did not produce an outcome demonstrably at odds with clearly expressed congressional intent.

Date: 
Monday, June 15, 2009
Category: 
Abusive Filings
Conversion and Dismissal
Statutory Construction
Substantial Abuse
Chapter: 
7