Sara Lianne Hamilton-Conversano filed for chapter 7 bankruptcy with the sole purpose of dealing with a $46,669.52 credit card debt on a credit card she and her non-filing spouse used to pay all household expenses. Finding that Ms. Hamilton-Conversano underreported contributions from her non-filing spouse on her Statement of Current Monthly Income, Form 122A-1, and took too large a deduction for private school tuition on Form 122A-2, the court granted the Bankruptcy Administrator’s motion to dismiss for abuse under section 707(b)(1). In re Hamilton-Conversano, No. 17-128 (Bankr. E.D. N.C. Sept. 28, 2017). Read More
Tag Archive: presumption of abuse
-
Debtor’s Chapter 7 Fails 707(b)’s “Smell Test”
Posted by NCBRC - November 15th, 2017
-
Section 707(b) Applies to Converted Cases
Posted by NCBRC - July 10th, 2017
Section 707(b) applies to a case converted to chapter 7 from chapter 13. Pollitzer v. Gebhardt, No. 16-11506 (11th Cir. June 27, 2017).
Stratton Pollitzer contributed to his chapter 13 plan for two years before converting under section 1307 to chapter 7. Upon conversion, the trustee moved the court to dismiss the case as abusive under section 707(b) because Mr. Pollitzer’s income was sufficient to significantly repay his unsecured creditors. Conceding that his petition failed the means test, Mr. Pollitzer took the position that because his case was originally filed as a chapter 13, section 707(b) was inapplicable. Both the bankruptcy court and the district court concluded that section 707(b) applies to converted cases. The Eleventh Circuit agreed. Read More
-
Section 707(b) applies to Converted Case
Posted by NCBRC - April 25th, 2016
In a succinct opinion acknowledging a split in the courts, the district court for the Southern District of Florida found that section 707(b)(1) applies to cases that are converted from chapter 13 to chapter 7. Pollitzer v. Gebhardt (In re Pollitzer), No. 15-20376 (S.D. Fla. March 23, 2016).
-
Student Loan May Be “Special Circumstance” under Section 707(b)(2)(B)(i)
Posted by NCBRC - October 2nd, 2013
In a fact-specific analysis, the court in In re Bradley found that the debtors’ nondischargeable student loan debt constituted a “special circumstance” that could be used to adjust current monthly income to rebut the presumption of abuse otherwise created by the means test calculation under section 707(b). 2013 WL 4663125 (Bankr. S.D. Ala. Aug. 30, 2013). Read More
-
Court Erroneously Applies Lanning to Find Presumption of Abuse in Chapter 7
Posted by NCBRC - July 4th, 2013
The district court for the Eastern District of North Carolina was asked to revisit its previous decision that a chapter 7 debtor may take secured payment deductions on property he intends to surrender. Krawczyk v. Lynch (In re Krawczyk), No. 12-643 (E.D. N.C. June 17, 2013). The bankruptcy court had concluded that intervening Supreme Court and Fourth Circuit decisions rendered that finding incorrect. In re Krawczyk, No. 11-0956-8-JRL, 2012 WL 3069437 * 5 (Bankr. E.D. N.C. July 27, 2012) (relying on Hamilton v. Lanning, 130 S. Ct. 2464 (2010); Ransom v. FIA Card Services, 131 S.Ct. 716, 178 L.Ed.2d 603 (2011); In re Quigley, 673 F.3d 269 (4th Cir. 2012)). The district court agreed that the debtor could not take the deductions and that, therefore, the petition was presumptively abusive under section 707(b)(2)(A). Read More
-
Request Assistance
Request assistance with a case.
-
Help NCBRC
NCBRC needs your support to protect the rights of consumer bankruptcy debtors. The most effective way to support NCBRC is with a direct donation.
There are many other ways to give to NRBRC:
iGive.com: When you purchase items at over 1,400 online stores, a percentage of your purchase will be donated to NCBRC. Stores include Macy’s, Melissa and Doug, Bed Bath & Beyond, Nike, Petsmart, and more. Shop and Give today!
-
Keep up with NCBRC
Thank you!
Thank you to the following organizations without whose support our work would not be possible.
American College of Bankruptcy
The American College of Bankruptcy is an honorary public service association of bankruptcy and insolvency professionals who are invited to join as Fellows based on a proven record of the highest standards of professionalism plus service to the profession and their communities. Together with its affiliated Foundation, the College is the largest financial supporter of bankruptcy and insolvency-related pro bono legal service programs in the United States.NACBA
Visit NACBA.org
The only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA has more than 3,000 members located in all 50 states and Puerto Rico.