Laughlin v. Nouveau Body & Tan, L.L.C. (In re Laughlin), 602 F.3d 417 (5th Cir. 2010)
Jan 01, 2010OUTCOME: Ruling in favor of Laughlin
Bedford, TX
Bankruptcy and debt Lawyer at Bedford, TX
Practice Areas: Bankruptcy & Debt, Business
OUTCOME: Ruling in favor of Laughlin
OUTCOME: District Court was affirmed.
On an issue of first impression, the appellate court concluded that dismissal for substantial abuse in 11 U.S.C.S. § 707(b) included a consideration of post-petition events because the absence of limit ... ing language regarding the consideration of charitable contributions indicated that Congress did not intend to place any other limitations on the bankruptcy court in ruling on a motion to dismiss under § 707(b). Moreover, the phrase "or continues to make" suggested that the bankruptcy court was entitled to focus on subsequent developments in the debtor's financial condition, except to what charities the debtor was presently contributing. Although post-petition earnings were not property of the estate under 11 U.S.C.S. § 541(a)(6), the bankruptcy court was to take them into account.
OUTCOME: