this was quoted from a bankruptcy advisor on bankrate.com
"For those unfamiliar with the bankruptcy process, a presumption of abuse typically arises when a debtor's income exceeds the median income of all individuals in the debtor's state. Or the debtor lists expenses that exceed permissible expenses. The United States Bankruptcy Trustee presumes that the debtor is trying to abuse the bankruptcy system and notifies the debtor by sending a presumption of abuse letter.
When you have income above the median income for the state you live in, you must pass the "means test." In general, this test is used to see if your income available for debt repayment over that five-year period is $10,000 or more, then Chapter 13 will be required. In other words, anyone earning above the state median, and with at least $166.67 per month of available income, will automatically be denied Chapter 7. So, for example, if the court determines that you have $200 per month income above living expenses, $200 times 60 is $12,000. Because $12,000 is above $10,000, you're stuck with Chapter 13.
Read more: http://www.bankrate.com/finance/debt/chapter-7-versus-chapter-1.aspx#ixzz3jbEBOGHM
Follow us: @Bankrate on Twitter | Bankrate on Facebook"
