Filing Bankruptcy & The Means Test

Section 707(b)(2): Presumption of Abuse.

There is a presumption of abuse if, after applying the means test,
1) The debtor’s current monthly income over 60 months after deducting certain allowed expenses, is at least $10,000.00 or
2) The debtor’s current monthly income over 60 months, after deducting certain allowed expenses, is less than $10,000.00, but more than $6,000.00 and equals at least 25% of the debtor’s non-priority, unsecured debt.

Thus, the amount of unsecured debt will play a role in whether or not one can file for Chapter 7 bankruptcy. 

Example:

CMI remaining after allowed deductions             Presumption of abuse
Less than $100.00                                                         Does not arise
$100.00                                                                             Arises unless debt exceeds $24,000.00
$150.00                                                                             Arises unless debt exceeds $36,000.00
$166.66                                                                              Arises unless debt exceeds $39,998.40
More than $166.66                                                       Always arises