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Who can file

Means test

The Chapter 7 income test under section 707(b)(2) that determines whether a filing is presumed to be an abuse. 1

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How it works

For individual Chapter 7 filers, the means test decides whether a filing is presumed to be an abuse of the Bankruptcy Code. If it is, the case may be dismissed or converted, usually to Chapter 13. 1

The test compares a filer's income with Census Bureau median income figures and IRS expense standards. 2

Common questions

What happens if a filing is presumed to be an abuse?

The case may be dismissed or converted, usually to Chapter 13. 1

Sources

  1. Glossary
  2. U.S. Trustee Program: Means Testing

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