Special circumstances to Rebutt 707(b)(2)(B)

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Yahoo Bot
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The facts you describe relate to a proposed adjustment to CMI rather than to the expense part of the test. Since CMI is entirelyprepetition, no postpetition special circumstances would help to rebut the presumption.

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Yahoo Bot
Posts: 22904
Joined: Sun Oct 18, 2020 11:38 pm


I HAVE MY FIRST CASE WHERE THE UST CLAIMS WE DID NOT PASS THE MEANS TEST AND FILED A MOTION TO DISMISS.
SUBSEQUENTLY, THE DEBTOR GETS A PAY CUT AT HER JOB A LITTLE MORE THAN WHAT THE UST SAYS SHE CAN PAY BACK UNDER THE MEANS TEST FORM THEY FILLED OUT, AND WHAT THEY SAY WOULD BE TRUE UNDER A "TOTALITY OF THE CIRCUMSTANCES" TEST.
THE REBUTTAL PART OF THE STATUTE, REPRODUCED BELOW, SEEMS TO INDICATE THAT THE SPECIAL CIRCUMSTANCES HAVE TO BE PREPETITION. IS THAT TRUE OR CAN POST PETITION CHANGES BE "SPECIAL CIRCUMSTANCES?"
(B) (i) In any proceeding brought under this subsection, the presumption of abuse may only be rebutted by demonstrating special circumstances, such as a serious medical condition or a call or order to active duty in the Armed Forces, to the extent such special circumstances that justify additional expenses or adjustments of current monthly income for which there is no reasonable alternative.
(ii) In order to establish special circumstances, the debtor shall be required to itemize each additional expense or adjustment of income and to provide
(I) documentation for such expense or adjustment to income; and
(II) a detailed explanation of the special circumstances that make such expenses or adjustment to income necessary and reasonable.

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