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In re Tabor (Case No. 04-00727) 04/01/2005

The Chapter 7 Trustee filed a motion to dismiss the Debtor's case for substantial abuse under 11 U.S.C. § 707(b). The Court found that the Debtor wished to use bankruptcy to service indebtedness for which she is not legally obligated, pay transportation costs of the non-debtor spouse, and expense the start up of a business enterprise for the non-debtor spouse by discharging her own debt.  The Court, applying the factors enumerated by the Fourth Circuit in Green v. Staples (In re Green), 934 F.2d 568 (4th Cir. 1991), concluded that this constitutes bad faith, and therefore, it would be a substantial abuse to permit the Debtor to continue under Chapter 7. 

Date: 
Friday, April 1, 2005
Category: 
Abusive Filings
Bad Faith
Dismissal
Substantial Abuse
Chapter: 
7