From the Editor – Conversion and Dismissal

By The Honorable William Houston Brown (Retired)

Failure to take steps to alter lavish lifestyle was cause for dismissal. An arbitration award of $568,568 had been entered against the husband and after that award, he and his wife spent thousands on inessential consumer goods and services. When Chapter 7 was filed, the arbitration creditor, the husband’s former employer, moved for dismissal under § 707(a) and (b), and the case was dismissed under § 707(a). The Seventh Circuit rejected the debtors’ argument that “for cause” under § 707(a) is limited to procedural defects in the . . .

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