Case Summary:
The United States Trustee brought a motion to dismiss based on the “presumption of abuse” found in 11 U.S.C. § 707(b)(2). The debtors argued that the presumption of abuse did not apply because the debtors’ deductions, including deductions for secured debt, indicated that they had no disposable income. At issue were deductions for a home and a vehicle that the debtors proposed to surrender. The Court ruled that § 707(b)(2) contemplated a “snapshot” review of the debtors’ finances as of the petition date, and that the debtors were entitled to deduct secured debt which was contractually due as of that date regardless of their subsequent intentions toward the collateral. Consequently, the motion was denied.

Statute/Rule References:
11 U.S.C. § 707 -- Dismissal