Friday, May 6, 2011

Too Much Income for Chapter 7

4th Circuit: Calhoun v. U.S. Trustee

No. 09-1646 (4th Cir. May 3, 2011)


Affirmed. The bankruptcy court looked at the totality of the debtors' financial circumstances and determined that based upon the debtors' ability to pay their creditors and other considerations, abuse was present. The Court found no error in the bankruptcy court's decision to dismiss the debtors' Chapter 7 case and the evidence supported the bankruptcy courts finding of abuse pursuant to Section 707(b)(3).