In re Herbert

405 B.R. 165 (2008)

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In re Herbert

United States Bankruptcy Court for the Western District of North Carolina
405 B.R. 165 (2008)

  • Written by Jody Stuart, JD

Facts

Thomas Herbert (debtor) filed for Chapter 7 bankruptcy in North Carolina. Herbert lived with his girlfriend, his biological daughter, and his girlfriend’s eight children from a previous relationship. They had all lived together for several years, and Herbert had consistently supported his girlfriend and the children during that time. Herbert claimed a household size of 11 on Form B22A of the bankruptcy filing. Herbert’s annualized current monthly income was $109,500, which was less than the median family income of $111,469 for a household size of 11 in North Carolina. Accordingly, Herbert was not required to complete the rest of Form B22A. The bankruptcy administrator moved to dismiss Herbert’s case, arguing that Herbert was only entitled to claim a household size of two: Herbert and his biological daughter. This would make the applicable median family income equal to $49,259, which would leave sufficient disposable income for Herbert to pay creditors some portion of their claims. Therefore, the bankruptcy administrator moved to dismiss the case as an abuse of Chapter 7.

Rule of Law

Issue

Holding and Reasoning (Hodges, J.)

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