IN THE UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF VIRGINIA

Alexandria Division

In re: * 

 * Case No. 15-13203-BFK

KENNETH FERGUSON * 

MARY FERGUSON *

* Chapter 7 

 Debtors * 

DEBTOR’S OPPOSITION TO THE U.S. TRUSTEE’S MOTION TO DISMISS

COME NOW Kenneth Ferguson and Mary Ferguson, (“Debtors”), through undersigned 

counsel and respond in opposition to the U.S. Trustee’s (“UST”) Motion to Dismiss. In support,

they would present the following:

1. On or about September 14, 2015, Debtors filed for relief under Chapter 7 of the 

Bankruptcy Code.

2. On Form 22(c) and Schedule I, Debtors indicated that their current household 

consisted of seven (7) people: the Debtors and their five (5) youngest children.

3. In those same documents, Debtors also stated that Mr. Ferguson was the sole incomeearner for the household.

4. In their schedules, Debtors stated that they own real property located 10618 Beach Mill 

Rd., Great Falls, VA 22066, for which Wells Fargo has three liens on the property.

5. In their schedules, Debtors stated that the combined monthly mortgage payments for 

this property was approximately $11,785.31.

6. Debtors also stated that their disposable monthly income was -$11,626.88.

7. On or about December 18, 2015, the U.S. Trustee filed its motion to dismiss for abuse, 

stating Debtors “ability to repay” as the basis for dismissal.

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8. The UST focuses on Debtors’ “excessive” mortgage payments (for a home Debtors 

have lived in for 15 years), arguing that if Debtors’ had a more “reasonable” mortgage payment, 

Debtors would have positive monthly disposable income and therefore an ability to repay their 

creditors.

9. Nothing in Debtors’ schedules supports this conclusion: If Debtors could reduce their 

monthly mortgage expense to the IRS standard allowance of $2,708.00 (which is improbable for 

area rents) their disposable monthly income would still be negative.

10. Even if Mr. Ferguson, who is nearly 58 years old, were to cease his monthly 

retirement deductions and “recoup” the full $829.001, per the UST’s objection, Debtors’ 

disposable monthly income would still be heavily negative (-$1,720.57) even without the 

mortgage payment.

11. Other than the UST’s qualms with Mr. Ferguson’s voluntary retirement deduction, 

neither the Chapter 7 Trustee nor the UST have raised objections to any of the Debtors’ other 

deductions and expenses.

12. Accordingly, Debtors and undersigned counsel are puzzled at the UST’s statement 

that the Debtors have an ability to repay; as the numbers demonstrably show otherwise. 

13. Undersigned counsel has had numerous discussions with the UST since the Motion’s 

filing, but the latter has yet to enumerate how it reached the conclusion that Debtors have the 

ability to repay, in spite of all the evidence.

 

1 Ceasing the voluntary retirement contribution would have tax implications that would still reduce Debtors’ 

monthly net income; and forfeit employer’s 100% matching of contributions. 

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WHEREFORE, the Debtors respectfully pray of the Court as follows: 

A. That the Court DENY the UST’s Motion to Dismiss and grant the Chapter 7 

discharge; and

B. Grant such other and further relief as the Court may deem just and proper. 

Respectfully submitted this 25th day of January, 2016. 

By: /s/ Jeremy C. Huang

Jeremy C. Huang, VSB 76861

Huang Law, PLLC

4120 Leonard Dr.

Fairfax, VA 22042

703-755-0214 / jeremy@huanglawoffice.com

Attorney for the Debtors

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 25th day of January, 2016, a copy of the foregoing 

Opposition was sent via the Court’s ECF system to the U.S. Trustee.

/s/ Jeremy C. Huang

Case 15-13203-BFK Doc 24 Filed 01/25/16 Entered 01/25/16 19:12:15 Desc Main

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