In re Vito O. Roppo, 09 B 37273
Opinion Sept. 16, 2010
Judge: John H. Squires
Debtor’s lavish living warranted dismissal of Chapter 7 case as abusive.
A Chapter 7 case that was not filed in response to any sudden illness, calamity, disability or unemployment by a debtor who budgeted expenses consistently exceeded those permitted under Internal Revenue Service (IRS) standards, including the $2,250 per month that the debtor budgeted as a rental expense for a four-bedroom, 3,750-square-foot home for himself, his wife and their one child, had to be dismissed based on the totality of circumstances of the debtor’s financial situation as an abuse of the provisions of Chapter 7. Inexplicably, despite the fact that his wife had recently emerged from her own Chapter 7 case and did not work outside the home, the debtor had purchased a luxury automobile on her behalf, on which the payments were $520 per month. The debtor had the ability to fund a Chapter 13 plan to make a distribution on unsecured claims.
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