In re Booker, Case No. 08-42466

Court grants motion to dismiss pursuant to § 707(b)(3) based on totality of the circumstances of Debtors’ financial situation and bad faith. Court discusses standards applicable and the factors to consider under each of the two subparagraphs of § 707(b)(3). Court may consider Debtors’ ability to pay which can be determinative and is principal if not exclusive factor for determining dismissal under totality of circumstances. Court may consider Social Security income in determining ability to pay under § 707(b)(3) even though excluded from definition of current monthly income. Court will consider propriety of allowing deductions for contributions to retirement plans on case-by-case basis. Court concludes Debtors have ability to pay substantial percentage of their unsecured debt and that case was not filed in good faith based on inaccuracies in schedules.

Date of the decision: January 23, 2009

Full opinion click here.

Kansas City, Missouri Bankruptcy Attorney, Rachel Lynn Foley.