Means Testing – Based on the Debtor’s “Current Family Income”

If the debtor’s net income on a monthly basis is above a certain level, computed through the means testing rules, abuse is presumed. [11 U.S.C. §707 (b)(2)] If the debtor’s “current family income” (i.e., gross monthly income) is below the median income of the debtor’s state, means testing cannot be the basis for a motion to dismiss. [11 U.S.C. §707( b)(7)] “Abuse” may, however, still be the basis for dismissal.

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