Bankruptcy Administrator v. Gregory, 471 B.R. 823

Gregory filed a voluntary Chapter 7 with $59,152.35 unsecured debts and a $237,800 mortgage on a jointly owned residence; $8,000 of unsecured debt was non-dischargeable student loans.
Her six-month pre-piling income totaled $3,943.72 for her share, with her husband’s income at $9,155.00; she claimed $6,606.72 as current monthly income under § 707(b)(2)(A) and deducted a marital adjustment for her husband’s student loan payments and former residence costs.
She owned a former tenancy by the entirety residence valued at $260,000; the case proceeded after the Bankruptcy Administrator filed a motion to dismiss on February 2, 2011.
The bankruptcy court held a hearing on June 21, 2011 and denied the Administrator’s amended motion to dismiss on August 17, 2011, prompting timely appeal.
The Administrator challenges (1) whether non-filing spouse payments for repairs on the former residence fall within § 101(10A)(B) household expenses for the § 707(b)(2) analysis and (2) whether those payments should be considered in the § 707(b)(3) totality-of-the-circumstances analysis.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether non-filing spouse payments are household expenses under § 707(b)(2)	Bankruptcy Administrator	Gregory	Payments are not household expenses; properly excluded
Whether non-filing spouse payments are relevant to § 707(b)(3) totality of circumstances	Bankruptcy Administrator	Gregory	Not considered in totality analysis; no abuse found

Calhoun v. U.S. Trustee, 650 F.3d 338 (4th Cir.2011) (totality analysis and abuse standards under 707(b)(3))
In re McGreevy, 955 F.2d 957 (4th Cir.1992) (definition of household goods and nexus to daily living)
Green v. Staples, 934 F.2d 568 (4th Cir.1991) (Green factors guiding totality-of-the-circumstances analysis)
Hebbring v. U.S. Trustee, 463 F.3d 902 (9th Cir.2006) (abuse-of-discretion review of totality of the circumstances)