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Question: Case Problem with Sample Answer. James Stout, a professor of economics and business at Cornell College in Mount Vernon, Iowa, filed a petition in bankruptcy, 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 first and third at more than forty competitive events. He had decided to home school G. S., whose 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)]
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