Implications Of In Re Rahim

Law360, New York (February 7, 2011, 2:24 PM EST) -- On Dec. 16, 2010, the Bankruptcy Court for the Eastern District of Michigan weighed in on an issue plaguing bankruptcy practitioners since the inception of the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005 and the implementation of the means test: Can the court dismiss a bankruptcy petition of a debtor whose debts are primarily nonconsumer (and therefore not subject to the means test) under 11 U.S.C. §707(a)[1] for cause?[2]

Prior to this decision, it was clear that a debtor’s bankruptcy could be dismissed for...
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