In re Brenda Kaye Wilkins

Outcome: A Big Win for the Debtor

Description: The Office of the United States Trustee filed a Motion to dismiss the bankruptcy case on the grounds of abuse. The issue is whether the debtor may include in her “means test” calculation payments due on her secured property obligations, notwithstanding the fact that she intends to surrender the property subject to the security interest and will not be making payments on the secured debt postpetition. After analysis of the statutory language as applied to the facts of this case, the court joined with the majority of bankruptcy court decisions addressing this issue and finds the debtor is entitled to deduct these secured payments in her means test calculations. As a result of this deduction, the debtor passes the means test of §707(b)(2).