Justia U.S. 8th Circuit Court of Appeals Opinion Summaries

Appellee initially filed for bankruptcy protection under Chapter 13 but after one of his creditors, appellant, filed objections to appellee's Chapter 13 plan, appellee converted the case to a Chapter 7 proceeding. At issue was whether the bankruptcy court erred in ordering appellee to convert his case back to a Chapter 13 proceeding, or to face dismissal, following appellee's failure to rebut a presumption of abuse arising from the means test pursuant to 11 U.S.C. 706(b)(2). The court found no error and held that the bankruptcy court acted pursuant to 11 U.S.C. 707(b)(1) by forcing appellee to either consent to a reconversion or face dismissal because of the unrebutted presumption of abuse that arose in his case.