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In re Hall (Case No. 16-61894) 06/30/2017

The United States Trustee asserted that the totality of the debtor’s financial circumstances demonstrated abuse of the provisions of chapter 7 of the Bankruptcy Code under section 707(b)(3)(B).  The United States Trustee therefore moved for dismissal of the case pursuant to section 707(b)(1).  The primary dispute focused on the debtor’s ability to pay in light of expenses associated with a house the debtor owned in addition to expenses associated with another house owned by the debtor’s non-filing spouse.  Examining the factors set out in the Fourth Circuit decision in Green v. Staples (In re Green), 934 F.2d 568 (4th Cir. 1991), the Court failed to find evidence sufficient to support a showing that in this case the debtor’s financial circumstances demonstrated abuse.  Accordingly, the Court denied the motion to dismiss.

Friday, June 30, 2017
Chapter 7 Issues
Conversion and Dismissal