Matter of Brady
Matter of Brady
Opinion
ORDER
Before the court is an appeal from an order of the Bankruptcy Court, made January 21, 1987, which dismissed appellant’s Chapter 7 bankruptcy petition.
Appellant filed her Chapter 7 petition on May 5, 1986, listing unsecured claims totaling $5,448.36, and no secured or priority claims. Her property was of nominal value; appellant’s sole income is a Social Security benefit check in the amount of $448.00 per month. On Schedule B-4 of her petition, appellant claimed her Social Security benefit as exempt property.
*617 On January 21, 1987, after a hearing on the matter, the Bankruptcy Court dismissed the appellant’s petition pursuant to 11 U.S.C. § 707(b), stating that appellant’s $448.00 per month income would enable her to repay her unsecured creditors through a Chapter 13 Plan in a little over two years at a rate of $200.00 per month.
Appellant points out that her monthly Social Security check is exempt property from her bankruptcy estate. See 11 U.S.C. § 522; 42 U.S.C. § 407(b); Mo.Rev.Stat. §§ 513.427 and 513.430(10)(a) (1986). This court agrees with appellant that it was error to dismiss her Chapter 7 petition on the grounds that she could pay her unsecured creditors with exempt income. See In re Mastroeni, 56 B.R. 456, 458-59 (S.D.N.Y. 1985). Accordingly, it is
ORDERED the Bankruptcy Court’s order dismissing appellant’s Chapter 7 petition is reversed; it is further
ORDERED this matter is remanded to the Bankruptcy Court for further proceedings consistent with this order.
Reference
- Full Case Name
- In the Matter of Doreen Mary Jane BRADY, Debtor/Appellant
- Cited By
- 6 cases
- Status
- Published