Source: https://law.justia.com/codes/us/2016/title-11/chapter-7/subchapter-i/sec.-707/
Timestamp: 2019-04-22 00:06:17
Document Index: 786728184

Matched Legal Cases: ['§ 707', '§707', '§312', '§219', '§4', '§102', '§2', '§202', '§2', '§104', '§1911', '§2', '§2', '§2', '§102', '§102', '§102', '§219', '§219', '§4', '§2', '§2', '§107']

Sec. 707 - Dismissal of a case or conversion to a case under chapter 11 or 13 :: 2016 US Code :: US Codes and Statutes :: US Law :: Justia
Justia › US Law › US Codes and Statutes › US Code › 2016 US Code › Title 11 - Bankruptcy › Chapter 7 - Liquidation › Subchapter I - Officers and Administration › Sec. 707 - Dismissal of a case or conversion to a case under chapter 11 or 13
Sec. 707 - Dismissal of a case or conversion to a case under chapter 11 or 13
Citation 11 U.S.C. § 707 (2016)
§707. Dismissal of a case or conversion to a case under chapter 11 or 13
(2)(A)(i) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall presume abuse exists if the debtor's current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv), and multiplied by 60 is not less than the lesser of—
(ii)(I) The debtor's monthly expenses shall be the debtor's applicable monthly expense amounts specified under the National Standards and Local Standards, and the debtor's actual monthly expenses for the categories specified as Other Necessary Expenses issued by the Internal Revenue Service for the area in which the debtor resides, as in effect on the date of the order for relief, for the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case, if the spouse is not otherwise a dependent. Such expenses shall include reasonably necessary health insurance, disability insurance, and health savings account expenses for the debtor, the spouse of the debtor, or the dependents of the debtor. Notwithstanding any other provision of this clause, the monthly expenses of the debtor shall not include any payments for debts. In addition, the debtor's monthly expenses shall include the debtor's reasonably necessary expenses incurred to maintain the safety of the debtor and the family of the debtor from family violence as identified under section 302 of the Family Violence Prevention and Services Act, or other applicable Federal law. The expenses included in the debtor's monthly expenses described in the preceding sentence shall be kept confidential by the court. In addition, if it is demonstrated that it is reasonable and necessary, the debtor's monthly expenses may also include an additional allowance for food and clothing of up to 5 percent of the food and clothing categories as specified by the National Standards issued by the Internal Revenue Service.
(II) In addition, the debtor's monthly expenses may include, if applicable, the continuation of actual expenses paid by the debtor that are reasonable and necessary for care and support of an elderly, chronically ill, or disabled household member or member of the debtor's immediate family (including parents, grandparents, siblings, children, and grandchildren of the debtor, the dependents of the debtor, and the spouse of the debtor in a joint case who is not a dependent) and who is unable to pay for such reasonable and necessary expenses. Such monthly expenses may include, if applicable, contributions to an account of a qualified ABLE program to the extent such contributions are not excess contributions (as described in section 4973(h) of the Internal Revenue Code of 1986) and if the designated beneficiary of such account is a child, stepchild, grandchild, or stepgrandchild of the debtor.
(iii) The debtor's average monthly payments on account of secured debts shall be calculated as the sum of—
(iv) The presumption of abuse may only be rebutted if the additional expenses or adjustments to income referred to in clause (i) cause the product of the debtor's current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv) of subparagraph (A) when multiplied by 60 to be less than the lesser of—
(i) if the debtor is a disabled veteran (as defined in section 3741(1) of title 38), and the indebtedness occurred primarily during a period during which he or she was—
(ii) with respect to the debtor, while the debtor is—
(4)(A) The court, on its own initiative or on the motion of a party in interest, in accordance with the procedures described in rule 9011 of the Federal Rules of Bankruptcy Procedure, may order the attorney for the debtor to reimburse the trustee for all reasonable costs in prosecuting a motion filed under section 707(b), including reasonable attorneys' fees, if—
(5)(A) Except as provided in subparagraph (B) and subject to paragraph (6), the court, on its own initiative or on the motion of a party in interest, in accordance with the procedures described in rule 9011 of the Federal Rules of Bankruptcy Procedure, may award a debtor all reasonable costs (including reasonable attorneys' fees) in contesting a motion filed by a party in interest (other than a trustee or United States trustee (or bankruptcy administrator, if any)) under this subsection if—
(B) A small business that has a claim of an aggregate amount less than $1,000 shall not be subject to subparagraph (A)(ii)(I).
(i) the term "small business" means an unincorporated business, partnership, corporation, association, or organization that—
(6) Only the judge or United States trustee (or bankruptcy administrator, if any) may file a motion under section 707(b), if the current monthly income of the debtor, or in a joint case, the debtor and the debtor's spouse, as of the date of the order for relief, when multiplied by 12, is equal to or less than—
(7)(A) No judge, United States trustee (or bankruptcy administrator, if any), trustee, or other party in interest may file a motion under paragraph (2) if the current monthly income of the debtor, including a veteran (as that term is defined in section 101 of title 38), and the debtor's spouse combined, as of the date of the order for relief when multiplied by 12, is equal to or less than—
(B) In a case that is not a joint case, current monthly income of the debtor's spouse shall not be considered for purposes of subparagraph (A) if—
(i)(I) the debtor and the debtor's spouse are separated under applicable nonbankruptcy law; or
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2606; Pub. L. 98–353, title III, §§312, 475, July 10, 1984, 98 Stat. 355, 381; Pub. L. 99–554, title II, §219, Oct. 27, 1986, 100 Stat. 3100; Pub. L. 105–183, §4(b), June 19, 1998, 112 Stat. 518; Pub. L. 109–8, title I, §102(a), (f), Apr. 20, 2005, 119 Stat. 27, 33; Pub. L. 110–438, §2, Oct. 20, 2008, 122 Stat. 5000; Pub. L. 111–320, title II, §202(a), Dec. 20, 2010, 124 Stat. 3509; Pub. L. 111–327, §2(a)(25), Dec. 22, 2010, 124 Stat. 3560; Pub. L. 113–295, div. B, title I, §104(b), Dec. 19, 2014, 128 Stat. 4064.)
This section authorizes the court to dismiss a liquidation case only for cause, such as unreasonable delay by the debtor that is prejudicial to creditors or nonpayment of any fees and charges required under chapter 123 [§1911 et seq.] of title 28. These causes are not exhaustive, but merely illustrative. The section does not contemplate, however, that the ability of the debtor to repay his debts in whole or in part constitutes adequate cause for dismissal. To permit dismissal on that ground would be to enact a non-uniform mandatory chapter 13, in lieu of the remedy of bankruptcy.
The Internal Revenue Code of 1986, referred to in subsec. (b)(2)(A)(ii)(II), is classified generally to Title 26, Internal Revenue Code.
2014—Subsec. (b)(2)(A)(ii)(II). Pub. L. 113–295 inserted at end "Such monthly expenses may include, if applicable, contributions to an account of a qualified ABLE program to the extent such contributions are not excess contributions (as described in section 4973(h) of the Internal Revenue Code of 1986) and if the designated beneficiary of such account is a child, stepchild, grandchild, or stepgrandchild of the debtor."
2010—Subsec. (a)(3). Pub. L. 111–327, §2(a)(25)(A), substituted "521(a)" for "521".
Subsec. (b)(2)(A)(ii)(I). Pub. L. 111–320 substituted "section 302 of the Family Violence Prevention and Services Act" for "section 309 of the Family Violence Prevention and Services Act".
Subsec. (b)(2)(A)(iii)(I). Pub. L. 111–327, §2(a)(25)(B)(i), inserted "of the filing" after "date".
Subsec. (b)(3). Pub. L. 111–327, §2(a)(25)(B)(ii), substituted "paragraph (2)(A)(i)" for "subparagraph (A)(i) of such paragraph" in introductory provisions.
2008—Subsec. (b)(2)(D). Pub. L. 110–438 substituted "testing—" for "testing," in introductory provisions, inserted cl. (i) designation before "if the debtor", redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i) and added cl. (ii).
2005—Pub. L. 109–8, §102(a)(1), substituted "Dismissal of a case or conversion to a case under chapter 11 or 13" for "Dismissal" in section catchline.
Subsec. (b). Pub. L. 109–8, §102(a)(2), designated existing provisions as par. (1), substituted "trustee (or bankruptcy administrator, if any), or" for "but not at the request or suggestion of" and "an abuse" for "a substantial abuse", inserted ", or, with the debtor's consent, convert such a case to a case under chapter 11 or 13 of this title," after "consumer debts", struck out "There shall be a presumption in favor of granting the relief requested by the debtor." before "In making", and added pars. (2) to (7).
Subsec. (c). Pub. L. 109–8, §102(f), added subsec. (c).
1998—Subsec. (b). Pub. L. 105–183 inserted at end "In making a determination whether to dismiss a case under this section, the court may not take into consideration whether a debtor has made, or continues to make, charitable contributions (that meet the definition of 'charitable contribution' under section 548(d)(3)) to any qualified religious or charitable entity or organization (as that term is defined in section 548(d)(4))."
1986—Subsec. (a)(3). Pub. L. 99–554, §219(a), added par. (3).
Subsec. (b). Pub. L. 99–554, §219(b), substituted "motion or on a motion by the United States trustee, but" for "motion and".
1984—Pub. L. 98–353 designated existing provisions as subsec. (a) and in pars. (1) and (2) substituted "or" for "and", and added subsec. (b).
Pub. L. 110–438, §4, Oct. 20, 2008, 122 Stat. 5002, as amended by Pub. L. 112–64, §2, Dec. 13, 2011, 125 Stat. 766; Pub. L. 114–107, §2, Dec. 18, 2015, 129 Stat. 2223, provided that:
"(a) Effective Date.—Except as provided in subsection (b), this Act [amending this section and enacting provisions set out as a note under section 101 of this title] and the amendments made by this Act shall take effect 60 days after the date of enactment of this Act [Oct. 20, 2008].
"(b) Application of Amendments.—The amendments made by this Act [amending this section] shall apply only with respect to cases commenced under title 11 of the United States Code in the 11-year period beginning on the effective date of this Act."
Pub. L. 109–8, title I, §107, Apr. 20, 2005, 119 Stat. 42, provided that: "For purposes of section 707(b) of title 11, United States Code, as amended by this Act, the Director of the Executive Office for United States Trustees shall, not later than 180 days after the date of enactment of this Act [Apr. 20, 2005], issue schedules of reasonable and necessary administrative expenses of administering a chapter 13 plan for each judicial district of the United States."
By notice dated Feb. 16, 2016, 81 F.R. 8748, effective Apr. 1, 2016, in subsec. (b)(2)(A)(i)(I), dollar amount "7,475" was adjusted to "7,700"; in subsec. (b)(2)(A)(i)(II), dollar amount "12,475" was adjusted to "12,850"; in subsec. (b)(2)(A)(ii)(IV), dollar amount "1,875" was adjusted to "1,925"; in subsec. (b)(2)(B)(iv)(I), dollar amount "7,475" was adjusted to "7,700"; in subsec. (b)(2)(B)(iv)(II), dollar amount "12,475" was adjusted to "12,850"; in subsec. (b)(5)(B), dollar amount "1,250" was adjusted to "1,300"; in subsec. (b)(6)(C), dollar amount "675" was adjusted to "700"; and, in subsec. (b)(7)(A)(iii), dollar amount "675" was adjusted to "700". See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.
By notice dated Feb. 12, 2013, 78 F.R. 12089, effective Apr. 1, 2013, in subsec. (b)(2)(A)(i)(I), dollar amount "7,025" was adjusted to "7,475"; in subsec. (b)(2)(A)(i)(II), dollar amount "11,725" was adjusted to "12,475"; in subsec. (b)(2)(A)(ii)(IV), dollar amount "1,775" was adjusted to "1,875"; in subsec. (b)(2)(B)(iv)(I), dollar amount "7,025" was adjusted to "7,475"; in subsec. (b)(2)(B)(iv)(II), dollar amount "11,725" was adjusted to "12,475"; in subsec. (b)(5)(B), dollar amount "1,175" was adjusted to "1,250"; in subsec. (b)(6)(C), dollar amount "625" was adjusted to "675"; and, in subsec. (b)(7)(A)(iii), dollar amount "625" was adjusted to "675".
By notice dated Feb. 19, 2010, 75 F.R. 8747, effective Apr. 1, 2010, in subsec. (b)(2)(A)(i)(I), dollar amount "6,575" was adjusted to "7,025"; in subsec. (b)(2)(A)(i)(II), dollar amount "10,950" was adjusted to "11,725"; in subsec. (b)(2)(A)(ii)(IV), dollar amount "1,650" was adjusted to "1,775"; in subsec. (b)(2)(B)(iv)(I), dollar amount "6,575" was adjusted to "7,025"; in subsec. (b)(2)(B)(iv)(II), dollar amount "10,950" was adjusted to "11,725"; in subsec. (b)(5)(B), dollar amount "1,100" was adjusted to "1,175"; in subsec. (b)(6)(C), dollar amount "575" was adjusted to "625"; and, in subsec. (b)(7)(A)(iii), dollar amount "575" was adjusted to "625".
By notice dated Feb. 7, 2007, 72 F.R. 7082, effective Apr. 1, 2007, in subsec. (b)(2)(A)(i)(I), dollar amount "6,000" was adjusted to "6,575"; in subsec. (b)(2)(A)(i)(II), dollar amount "10,000" was adjusted to "10,950"; in subsec. (b)(2)(A)(ii)(IV), dollar amount "1,500" was adjusted to "1,650"; in subsec. (b)(5)(B), dollar amount "1,000" was adjusted to "1,100"; in subsec. (b)(6)(C), dollar amount "525" was adjusted to "575"; and, in subsec. (b)(7)(A), dollar amount "525" was adjusted to "575".
United States Supreme Court to prescribe general rules implementing the practice and procedure to be followed under subsec. (b) of this section, with section 2075 of Title 28, Judiciary and Judicial Procedure, to apply with respect to such general rules, see section 320 of Pub. L. 98–353, set out as a note under section 2075 of Title 28.
Publication Title United States Code, 2012 Edition, Supplement 4, Title 11 - BANKRUPTCY
100 Stat. 3100
112 Stat. 518
119 Stat. 27, 42
122 Stat. 5000, 5002
124 Stat. 3509, 3560
128 Stat. 4064
129 Stat. 2223
Public Law References Public Law 95-598, Public Law 98-353, Public Law 99-554, Public Law 105-183, Public Law 109-8, Public Law 110-438, Public Law 111-320, Public Law 111-327, Public Law 112-64, Public Law 113-295, Public Law 114-107