No.
As reported by Robin Miller of CBAR, the dismissal of the Chapter 7 debtor’s case for bad faith amounting to cause under Code § 707(a) was not warranted where there was no evidence that the debtor had concealed or misrepresented his own assets or income or that he lived or continued a lavish lifestyle reflective of a lack of good faith in dealing with his creditors.
The U.S. Trustee asserted that the debtor filed the case in order to discharge his potential liability for allegedly assisting his parents in defrauding their creditors, the court credited the debtor’s testimony that his purpose in seeking a discharge was to enable him to forge a path to save his home and restructure his mortgage loan. The debtor believed that seeking bankruptcy protection and discharge of his unsecured debt, and in particular any debt associated with the allegedly fraudulent transfers, would provide him the opportunity to restructure the debt on his home. While he ultimately was unable to do so due to his employment being terminated after filing his petition, the debtor’s intent in filing was not for a purpose contrary to the purpose and spirit of the Bankruptcy Code.
Noting that dismissals under § 707(a) “are not intended to hammer a debtor for being a bad person,” the court in In re McFadden, 477 B.R. 686 (Bankr. N.D. Ohio 2012)said that such dismissals are reserved for cases where debtors are trying to undermine the integrity of the bankruptcy system.
In re Bage, 2014 WL 4749072 (Bankr. N.D. Ohio, Sept. 24, 2014)
(case no. 3:13-bk-33367) (Bankruptcy Judge Mary Ann Whipple)