Central District Consumer Bankruptcy Attorney's Association

Dear List Mates:
I am representing a separated couple. They each have more tax debt than consumer debt when looked at individually. This is important because one debtor would be ineligible for Chapter 7 unless that was the case.
However, adding up consumer debt vs. tax debt in the case as a whole tax debt is less than consumer debt. It's the same tax debt from a year they filed together. So could the UST argue that they should split that tax debt, thereby making it a consumer case?
So the main question is, can I rely on them treating the debtors individually instead of jointly? 11 U.S.C. 707(b) seems to take it debtor by debtor,
(b)(1)
After notice and a hearing, the court, on its own motion or on a motion by the United States trustee, trustee (or bankruptcy administrator, if any), or any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts, or, with the debtor's consent, convert such a case to a case under chapter 11 or 13 of this title, if it finds that the granting of relief would be an abuse of the provisions of this chapter. 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)).
Law Offices of Steven B. Lever
Steven B. Lever
* Tel. (562) 436-5456 ext. 1
* Fax (562) 485-6886
* sblever@leverlaw.com
www.leverlaw.com
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Dear List Mates:

I am representing a separated couple. They each have more tax debt than consumer debt when looked at individually. This is important because one debtor would be ineligible
for Chapter 7 unless that was the case.

However, adding up consumer debt vs. tax debt in the case as a whole tax debt is less than consumer debt. It’s the same tax debt from a year they filed together. So could
the UST argue that they should split that tax debt, thereby making it a consumer case?

So the main question is, can I rely on them treating the debtors individually instead of jointly? 11 U.S.C. 707(b) seems to take it debtor by debtor,




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