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Bankruptcy by Keyword:

"Totality Of Circumstances"

Related Keywords: dismissal . luxury expenses .

Case Law Topics

  • Chapter 7: "Totality of Circumstances" 707(b)(3): Debtor permitted -- or not permitted -- to file Chapter 7, regardless of means test result.

    Even if you pass the requirements of the means test, a court can still find that you don't qualify for Chapter 7 bankruptcy.

    The means test simply is an initial step to see if there is a "presumption" of abuse, based on the calculations therein.

    Even if those calculations don't result in a presumption of abuse, under 707(b)(2), a court can still find abuse if the "totality of circumstances" demonstrates "abuse" of Chapter 7 OR because of "bad faith" on the part of the debtor (generally involving hiding assets or other evasive conduct).
    As stated in In re Booker:
    "in assessing whether the filing was made in bad faith, this Court should focus more on conduct. Conversely, when assessing whether the case should be dismissed as an abuse based upon the totality of the Debtors' financial circumstances, the Court should consider primarily, if not exclusively, the Debtors' ability to pay."

  • Expenses: What constitutes a "luxury" vs. a "reasonable and necessary" expense?

    Given the case by case nature of these decisions, it's hard to discern a pattern. But here is a collection.


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