Case Conclusion Date: 03.28.2008
Practice Area: Bankruptcy & Debt
Outcome: Bankruptcy Court Affirmed--Motion Denied
Description: The United States Trustee filed a motion to dismiss pursuant to section 707(b)(2). The meeting of creditors had been continued to address concerns regarding debtors' means test. The United States Trustee filed a statement of presumed abuse within 10 days of the conclusion of meeting of creditors, and filed a motion to dismiss within 30 days thereafter. Debtors argued that pursuant to section 704(b)(2), the deadlines ran from the first date set for the meeting of creditors rather than the conclusion of the meeting. The United States Trustee had been taking the opposite approach nationally. On October 18, 2006, the bankruptcy court, Judge Robert D. Berger, ruled in favor of the debtors. The United States Trustee appealed the decision to the federal district court. District Judge Julie A. Robinson affirmed the ruling of the bankruptcy court. The bankruptcy court's decision in In re Close, found at 353 B.R. 915, was the first in the nation to address this issue. It has subsequently been followed by a large majority of subsequent cases from around the country.