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Dismissal may not be premised exclusively or primarily on a debtor's substantial financial means, however. Otherwise, dismissal would essentially be based upon a debtor's mere ability to repay, which is prohibited. In this case, the bankruptcy court did not err in denying creditor's motion to dismiss. Although debtors' annual income was approximately $370,000, debtors spent considerable amounts on luxury items, such as two Lexus automobiles and private school tuition of $5,000 per month, and debtors had saved more than $430,000 for retirement, there was no evidence that debtors schemed to conceal or misrepresent income, inflated expenses to hide income, filed misleading statements or schedules to defraud creditors, unduly interfered with the judicial process or engaged in other misconduct.)
In re Smith, 507 F.3d 64 (2d Cir. Nov. 5, 2007) (When a debtor moves to dismiss her case under S 707(a), the debtor's ability to repay her debts may constitute cause for dismissal. Debtor had obtained financing that would repay all creditors in full with interest, whereas, without dismissal, the creditors would not be paid until the debtor's personal injury suit - the sole asset of the estate - was completed, and if that action proved unsuccessful the creditors would receive nothing. Accordingly, dismissal would be in the interest of creditors. The bankruptcy court's concern that the debtor had been improperly influenced by the injury attorney the trustee sought to replace was not supported by the record.)
Hebbring v. U.S. Trustee, 463 F.3d 902 (9th Cir. Sept. 11, 2006) (Bankruptcy Court did not abuse discretion in dismissing a Chapter 7 petition for substantial abuse pursuant to pre-BAPCPA S 707(b), where debtor's disposable income was sufficient to pay creditors if she included her voluntary monthly retirement contributions. The Ninth Circuit rejected any bright-line, universal rule as to whether such contributions constitute a reasonably necessary expense.)
In re Cortez, 457 F.3d 448 (5th Cir. July 20, 2006) (Bankruptcy court should consider post-petition events in evaluating a motion to dismiss under S 707(b) for substantial abuse.)
72. 727(a) Chapter 7 Discharge -- Objection
Friendly Fin. Serv.-Eastgate Inc. v. Dorsey (In re Dorsey), 505 F.3d 395 (5th Cir. Oct. 23, 2007) ((1) Bankruptcy court erred when it held that creditor did not have standing to challenge dischargeability under S 523 or whether the debtor should be denied a discharge under S 727. Debtor had
