Order granting motion of United States Trustee to dismiss Chapter 7 case pursuant to 11 U.S.C. § 707(b)(3). U.S. Trustee argued that totality of circumstances demonstrated abuse because evidence shows Debtors could make substantial payments to creditors either in a case under Chapter 11 or 13, or outside of bankruptcy. In analyzing issue, Court determined that Section 707(b)(3) requires more than a finding of ability to pay. Relevant factors include: whether case filing caused by unforeseen event; eligibility of debtor for repayment-based relief; out-of-court remedies and negotiations; reliable income; potential for meaningful distribution to creditors under Chapter 13; and, reasonableness of debtor’s budget. Upon evaluation of foregoing factors in connection with financial condition of Debtors, Court concluded filing of petition under Chapter 7 was an abuse of Section 707(b)(3)."
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