Means Test

Section 707(b)(2) of the Bankruptcy Code applies a "financial assessment" to determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse is presumed if the debtor's total current monthly income (see definition above) over 5 years, net of certain statutorily allowed expenses, exceeds (i) $10,000, or (ii) 25% of the debtor's nonpriority unsecured debt, provided that amount is at least $6,000. The debtor may counter a presumption of abuse only by demonstrating special circumstances that justify additional expenses or adjustments of current monthly income.