John Calhoun v. United States Trustee

Plaintiffs appealed the judgment of the district court affirming the bankruptcy court's decision to dismiss their petition for Chapter 7 bankruptcy on grounds of abuse. At issue was whether the bankruptcy court erred in its finding that plaintiffs were able to pay their creditors based on the totality of the circumstances of their financial situation. The court affirmed and held that the evidence amply supported the bankruptcy court's findings of abuse where the court need not depend on the additional amount in Social Security benefits to determine that plaintiffs' excessive budge and unjustifiable expenses were an abuse of Chapter 7.