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In re Harrington (Case No. 08-70439) 02/17/09

United States Trustee filed a motion to dismiss the case under 11 U.S.C. §707(b)(1) on the grounds that the petition was an abusive filing. The 2005 Amendments to the Bankruptcy Code eliminated the requirement that the Court find a substantial abuse and also eliminated the prior presumption in favor of granting Chapter 7 relief. The Court found that a presumption of abuse did arise pursuant to § 707(b)(2). Further, even if no presumption of abuse arose, the Court found that the totality of the circumstances demonstrated abuse pursuant to § 707(b)(3). Further still, the Court found that the case was filed in bad faith pursuant to § 707(b)(3). Accordingly, the Court held that that the Debtors’ petition constitutes an abusive filing and granted the Trustee’s motion.

Date: 
Tuesday, February 17, 2009
Category: 
Abusive Filings
Means Test
Chapter: 
7