In re Rivers

466 B.R. 558 (2012)

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In re Rivers

United States Bankruptcy Court for the Middle District of Florida
466 B.R. 558 (2012)

  • Written by Jody Stuart, JD

Facts

Nicole Rivers (debtor) filed a petition for Chapter 7 bankruptcy in 2011. Before moving to Florida in 2010, Rivers lived in Virginia. Rivers still owned a home in Virginia at the time the bankruptcy petition was filed. The bankruptcy petition was accompanied by the Debtor’s Statement of Intention, in which Rivers indicated that her Virginia home was not claimed as exempt and would be surrendered. On Form 22A, which contained the means-test calculation, the deductions from Rivers’s income included the mortgage payments on the Virginia home. After subtracting all deductions from her total income, Rivers listed her monthly disposable income on Form 22A as $102.73. The United States trustee filed a motion to dismiss the case as an abuse of the provisions of Chapter 7. The trustee argued that the mortgage payment for the Virginia home should not have been deducted from Rivers’s monthly income in her means-test calculation. The trustee further argued that if the deduction were not allowed, Rivers’s disposable monthly income would equal approximately $2,595 per month, and the presumption of abuse would arise under § 707(b)(2) of the United States Bankruptcy Code.

Rule of Law

Issue

Holding and Reasoning (Glenn, J.)

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