The United States trustee filed a motion to dismiss this case under 11 U.S.C. § 707(b)(3)(B). The burden of persuasion was on the United States trustee to prove by a preponderance of the evidence that the continued prosecution of this chapter 7 case would constitute abuse. The debtor’s monthly disposable income in a chapter 13 case would have been negative. The Court found that, even if most of the United States trustee’s arguments regarding expenses were valid, the debtor could have only paid a dividend of no more than 2.5% to his unsecured creditors. The Court thus concluded that it was not an abuse of the provisions of chapter 7 to permit the debtor to prosecute his case under that chapter.
File:
Judge:
Date:
Tuesday, January 12, 2010
Category:
Abusive Filings
Chapter 7 Issues
Conversion and Dismissal
Chapter:
7