Substantial Abuse James Stout, a professor of economics and business at Cornell College in Iowa, fi.

Substantial Abuse James Stout, a professor of economics and
business at Cornell College in Iowa, fi led a petition in bankruptcy under
Chapter 7, seeking to discharge about $95,000 in credit-card debts. At the
time, Stout had been divorced for ten years and had custody of his children: Z.
S., who attended college, and G. S., who was twelve years old. Stout’s ex-wife
did not contribute child support. According to Stout, G. S. was an “elite”
ice-skater who practiced twenty hours a week and had placed between fi rst and
third at more than forty competitive events. He had decided to home school G.
S., whose academic achievements were average for her grade level despite her
frequent absences from public school. His petition showed monthly income of
$4,227 and expenses of $4,806. The expenses included annual home school costs
of $8,400 and annual skating expenses of $6,000. They did not include Z. S.’s
college costs, such as airfare for his upcoming studies in Europe, and other
items. The trustee allowed monthly expenses of $3,227— with nothing for
skating—and asked the court to dismiss the petition. Can the court grant this
request? Should it? If so, what might it encourage Stout to do? Explain. [In re
Stout, 336 Bankr. 138 (N.D. Iowa 2006)]