In Re Thomas W. Price, Debtor, Thomas W. Price v. United States Trustee

In this appeal, we consider whether the bankruptcy court appropriately dismissed a Chapter 7 bankruptcy for substantial abuse pursuant to 11 U.S.C. § 707 (b). Under the circumstances presented by this case, we conclude that it did.

I

Thomas Price is a computer consultant. In addition, during the relevant period, he and his wife operated several women’s clothing stores in Reno, Nevada. Price had financed these stores through cash and credit card advances. The businesses failed, along with his own computer consulting business. Price estimates that he and his wife lost approximately $250,000 during this period of time. After the business failures and after Price and his wife divorced, Price began working as an employee of JAT Computer Consulting services, earning a salary of $115,000 a year. Price filed a voluntary petition in bankruptcy under Chapter 7 of the United States Bankruptcy Code.

In his bankruptcy schedules, Price listed total debts of $322,552.81, $167,469 of which was secured debt, $19,356.50 priority debt, and $135,727.31 unsecured nonpri-ority debt. Additionally, $141,511 is secured on Price’s residence, and he claimed exemption to $12,667.34 based on the…