Do Special Circumstances Exist?
If a trustee or creditor files a motion to dismiss your bankruptcy case, you are provided 20 days’ notice in advance of the hearing. If the motion is grounded upon general abuse, then the burden of proof is on the party filing the motion. However, if the motion is based on presumed abuse, the burden is on the individual to prove their filing is not abusive to bankruptcy laws. A qualified bankruptcy attorney can help individuals identify whether unique circumstances are present, which validate additional expenses or adjustments of their current monthly income.
Substantiating special circumstances
Under 11 U.S.C. §707(b)(2)(B), to establish yours eligibility for Chapter 7, the defense of special circumstances exists. However, required additional expenses or adjustments to income exist “for which there is no reasonable alternative.” Each expense or adjustment of income requires you to provide documentation for the expense or adjustment, as well as a thorough description of the reason the special circumstance makes the expense or adjustment essential and reasonable. If the additional adjustments or expenses enable you to pass the means test, then the petitioner wins. The U.S. Trustee’s office may consider the following as special circumstances:
- Medical costs
- Job loss
- Reduction in income
- Household size increases post-petition either by a reasonable need to care for an additional person or pregnancy
- Military activation
After presenting the special circumstances, the trustee or judge may agree that your current economic state produces a net monthly income, which passes the required means test. Consult a New York highly competent bankruptcy attorney for help presenting an effective argument.
Acquire guidance from a highly effective New York bankruptcy attorney
By bringing your case to Mark E. Cohen, Esq., you can get assistance from a knowledgeable attorney who seeks to ease clients’ concerns. The office represents clients in Westbury and the surrounding areas who possess bankruptcy concerns.