United States Trustee v. Navin
Mar 11, 2016OUTCOME: Motion to Dismiss Granted with a Split Ruling
The United States Trustee filed a motion to dismiss chapter 7 under 707(b)(2) for presumption of abuse under the means test, and 707(b)(3) challenging the overall household budget. In the initial phas ... e of the trial, Counsel for the debtor prevailed on the argument regarding household size on the means test, with the Court deciding that the means test should take into account the "economic unit" that makes up the household. However, the Court determined in the second phase of the trial, that the totality of circumstances would appear to allow Debtors' the ability to make some repayment to their creditors, thus ultimately dismissing the chapter 7 in favor of a repayment plan under Chapter 11 or 13.
