In Re Smith

OPINION

THOMAS L. PERKINS, Chief Judge.

This matter is before the Court on the Motion by the United States Trustee (“UST”) to Dismiss the Chapter 7 case filed by the Debtors, Earl (EARL) and Vicky Smith (together the “DEBTORS”). The Motion seeks dismissal pursuant to Sections 707(b)(1) and (b)(2) of the Bankruptcy Code. The issue is whether a 401(k) loan is a secured debt or a “special circumstance” so as to defeat the presumption of abuse that otherwise arises.

Before filing with his wife the joint Chapter 7 petition on November 1, 2007, EARL obtained two loans from his Coulter Companies Profit…