Home Loan As Compensation is Not Consumer Debt For Purposes of Dismissal (In re Cherrett)

A home loan that an employee accepted as part of a compensation package was not a “consumer debt” for purposes of determining whether his Chapter 7 bankruptcy case was subject to a statutory dismissal provision, said the 9th Circuit BAP in their published opinion on Nov. 7, 2014.

Debtor-husband’s former employer moved to dismiss debtors’ Chapter 7 case as abuse of provisions of that chapter,  butt Judge Scott C. Clarkson denied the motion on ground that the debt  was not “consumer debt,”  as required by the Code.
See full opinion here: http://cdn.ca9.uscourts.gov/datastore/bap/2014/11/19/Cherrett-14-1056_rev.pdf1
See WestLaw Article:  Employee’s housing loan not consumer debt for dismissal purposes (9th Cir.BAP), 2014 WL 6435281

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