Keywords: special circumstances . means test . Chapter 13 plan . Projected disposable income .
debtor's ability to pay creditors relevant to 707(b)(3) totality of the circumstances analysis.
debtor's ability to pay creditors in a hypothetical 13 relevant to 707(b)(3) totality of the circumstances analysis. debtors 401(k) loans would allow for 0 payment to unsecured creditors.
Means Test > Special Circumstances > Special Circumstances: Can't fund a Chapter 13 makes Chapter 7 OK?4 Cases , IssueID 53 |
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Ch 7 Means Test |
Ch 13 Means Test |
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Topic Description:"because Congress has simultaneously directed that ERISA contributions and loan repayments be deductible from CMI in Chapter 13 cases, on the facts presented, such a conversion would yield no distribution to unsecured creditors ... the difference in treatment causes an absurdity that is directly contrary to the congressional intent, that while debtors with an ability to repay creditors should file under Chapter 13, debtors lacking that ability are to be permitted Chapter 7 relief." Lines of Cases:
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court allowed a debtor whose monthly disposable income created the presumption of abuse under the means test to remain in chapter 7 since the creditors would not receive any distribution under a chapter 13 plan.
debtor's ability to pay creditors in a hypothetical 13 relevant to 707(b)(3) totality of the circumstances analysis. debtors 401(k) loans would allow for 0 payment to unsecured creditors.
court allowed a debtor whose monthly disposable income created the presumption of abuse under the means test to remain in chapter 7 since the creditors would not receive any distribution under a chapter 13 plan.
debtor's ability to pay creditors in a hypothetical 13 relevant to 707(b)(3) totality of the circumstances analysis. debtors 401(k) loans would allow for 0 payment to unsecured creditors.
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