UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ IN RE: MEGAN MARIE TETER, │ Debtor. │ No. 22-3778 ___________________________________________ │ MEGAN MARIE TETER, │ > Appellant, │ │ │ v. │ │ RICHARD A. BAUMGART, Chapter 7 Trustee, │ │ UNITED STATES TRUSTEE, │ │ Appellee. ┘

Appeal from the United States District Court for the Northern District of Ohio at Cleveland; No. 1:21-cv-00334—Bridget Meehan Brennan, District Judge. United States Bankruptcy Court for the Northern District of Ohio at Cleveland; No. 1:19-bk-11224—Arthur I. Harris, Bankruptcy Judge.

Argued: June 13, 2023

Decided and Filed: January 3, 2024

Before: GILMAN, BUSH, and READLER, Circuit Judges. _________________

COUNSEL ARGUED: Susan M. Gray, SUSAN M. GRAY LAW, Rocky River, Ohio, for Appellant. Jeffrey E. Sandberg, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee. ON BRIEF: Susan M. Gray, SUSAN M. GRAY LAW, Rocky River, Ohio, for Appellant. Jeffrey E. Sandberg, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee. No. 22-3778 In re Teter Page 2

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OPINION _________________

CHAD A. READLER, Circuit Judge. Megan Teter was nearly $100,000 in debt when she declared bankruptcy. Believing that Teter was abusing the bankruptcy system, the United States Trustee intervened and filed a motion to dismiss the case. The Trustee later withdrew his motion, and the bankruptcy court discharged Teter’s debt without objection. Teter then sought attorneys’ fees from the Trustee through the Equal Access to Justice Act. The bankruptcy court denied her request. On appeal, the district court agreed and affirmed the bankruptcy court. We now do the same.

I.

Staring down $96,538.05 in debt, Megan Teter filed for Chapter 7 bankruptcy. Over half of her total debt reflected unpaid student loans. The Bankruptcy Abuse Prevention and Consumer Protection Act, passed in 2005, restricts an individual’s ability to discharge consumer debts if the debtor’s income exceeds certain thresholds. See 11 U.S.C. § 707; Schultz v. United States, 529 F.3d 343, 346–47 (6th Cir. 2008). In her Chapter 7 filing, Teter described her unpaid loans as “business debts,” meaning they were “not primarily consumer debts.” The United States Trustee disagreed. Reviewing Teter’s petition in accordance with statutory requirements, the Trustee concluded that Teter’s loans were better characterized as “consumer debt.” See 11 U.S.C. § 704(b) (explaining the duties of a trustee). And after evaluating Teter’s monthly income, the Trustee came to the view that Teter was abusing the system and thus filed a motion to dismiss her bankruptcy petition. See id. § 707(b) (allowing a