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In re Harvey (Case No. 08-71684) 07/20/09

Debtor filed a motion for summary judgment in response to the United States Trustee’s motion to dismiss his Chapter 7 case pursuant to 11 U.S.C. § 707(b)(1). The U.S. Trustee sought dismissal of the Debtor’s Chapter 7 case for abuse and alleged that the presumption of abuse arose under 11 U.S.C. § 707(b)(2). The Debtor argued that the presumption of abuse did not arise because he deducted payments secured by property he intended to surrender. The Court held that a debtor may deduct all payments on secured debts pursuant to § 707(b)(2)(A)(iii)(I) regardless of an exhibited intent to surrender. Accordingly, the Court held that the presumption of abuse did not arise.

Date: 
Monday, July 20, 2009
Category: 
Abusive Filings
Disposable Income
Means Test
Chapter: 
7