In re Shaw
United States Bankruptcy Court for the Middle District of North Carolina
311 B.R. 180 (2003)
The Shaws (plaintiffs), a married couple earning $138,000-$157,000 annually over five years of consistent employment, accumulated $130,000 in credit-card debt and other large unsecured debts by living in a large home, driving expensive cars, buying expensive consumer goods, and supporting both an adult child at home and another's college tuition; their proposed Chapter 7 plan sought to maintain this same lifestyle, including keeping their home, three vehicles, and continued tuition payments, while discharging their accumulated debts.
Whether a debtor with the ability to repay at least a portion of debts through reasonable financial sacrifice may nonetheless be allowed to proceed in Chapter 7 bankruptcy.