Published
decisions.
Our office recently sought the reversal of a bankruptcy
judge's order dismissing a chapter 7 case. The trial judge
dismissed the case based on his finding that the debtor had
committed "substantial abuse" by accumulating over
$170,000.00 in credit card debt. The Bankruptcy Appellate
Panel of the Ninth Circuit, in a published decision,
reversed the ruling of the lower court and in the process
clarified the meaning of "substantial abuse."
This decision has become an important precedent in the 9th
Circuit (Federal Courts in the western portion of the
United States) as there have been a rash of motions by the
Untied States Trustee's Offices to dismiss chapter 7 cases
they determine to be filed in bad faith.
You can read the entire decision below.