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Client prospect has premarital debt and over the means test because of postmarital income
You tell of 2-3 times of rebutting the presumption of abuse. It can be done.
Here you're dealing with two presumptions. Presumptions are meant to be
rebutted.
Community property presumtion: Is there a valid prenup? If not, "his" income
is income of the community, and thus hers. No facts are present that rebut
the community property presumption.
Presumption of abuse: Because of the above, the community income is listed
on B22. With that, if I understand the question right, in my experience,
"debtor failed to get a fresh start on her premarital debt before her
wedding, and her husband fails to acknowledge her share of community
property income for debt reorganization" does NOT rebut the OUST's
presumption of abuse.
Of course, your mileage may vary.
Hale
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These are the right facts for a test case. I am up to my ears in alligators right now, but will layout my argument in a later post so it can be critiqued by the collective to see if it will withstand objection.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
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What are your "special circumstances". You may have an argument if they
never co-mingled accounts but I do not believe this is something the
OUST would let slide (unless you just get lucky). Community property
income is required for any debtor. I would advise the client there is
good chance the OUST will move to dismiss or convert.
Shannon A. Doyle
Attorney at Law
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791-1600
Tel: (626) 646-2555
Fax: (626) 332-8644
www.blclaw.com
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PC has no income she earns herself, and only has community property
income. She has $20,000 of consumer debt she accrued before marriage in
2010 and her husband will not pay it. She lives in a HH of 3. Husband
earns $120,000, and since she must report that she earns that income she
will not pass the means test.
I've had some clients that I put through knowing they will not pass the
means test, and the UST sends out a notice of presumption of abuse but
doesn't move to convert or dismiss. They get their discharge. This has
happened on 2 or 3 occasions.
Can this presumption of abuse be overcome, or is the UST likely to let
it slide?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 1
>( Fax (800) 360-5161
>* sblever@leverlaw.com
> www.leverlaw.com
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