A recent 5th Circuit opinion (issued July 20, 2006) has determined that an individual debtor who was able to obtain a job after filing chapter 7 will have to account for that new income in a 707(b) motion to dismiss for substantial abuse. In this case, there was no finding by the bankruptcy court that the debtor had any awareness that he was about to get a job offer soon after filing his case. At the first meeting of creditors, the Trustee found out about the debtor's new job and promptly filed a motion under 707(b) to dismiss the case suggesting that the debtor (with his new income) could indeed fund a chapter 13 and that it was a substantial abuse to grant relief under chapter 7. The bankruptcy court disagreed and ruled that the debtor could proceed to discharge. That ruling was based in general on the fact that his new job was not in prospect when he filed and that the time for making a determination like this was at the petition date. The district court and now the court of appeals reversed and held that the new income could indeed be considered in the 707(b) determination. In particular, the 5th Circuit (Circuit Judge King authored the opinion) relied on its analysis of 707(b): Quote: Section 707(b) does not condition dismissal on the filing of bankruptcy being a "substantial abuse" but rather on the granting of relief, which suggests that in determining whether to dismiss under 707(b), a court may act on the basis of any development occurring before the discharge is granted. Here is a link to this interesting case of first impression: http://www.ca5.uscourts.gov/opinions/pub/05/05-10459-CV0.wpd.pdf Mike Copyright © All Rights Reserved