How Presumption of Abuse Affects Your Bankruptcy Case

A presumption of abuse means that you are taking advantage of the bankruptcy system, which could mean that your case is dismissed. This determination is made by reviewing your disposable monthly income to see if it is higher than the maximum allowed of $195.42 per month. If your monthly disposable income, or net CMI, is less than $117.08 monthly, no presumption of abuse is triggered. Talk to our Bankruptcy Attorneys in Tampa about how we might be able to help.

Charges of Possible Presumption of Abuse

When the CMI is between $117.08 and $195.42, the bankruptcy court will consider how much unsecured debt you have. If you can pay 25 percent of those debts over the next five years, presumption of abuse exists. If the trustee thinks that a presumption of abuse might exist, they will report it to the clerk of the court.

Income and the State Means Test

You can also avoid triggering the presumption of abuse by comparing your annual income to the median income listed for your state at the U.S. Trustee’s website. If you earn less than the state average, you pass the test and do not need to worry about presumption of abuse. However, if you earn more, you will need to do additional calculations to determine if you qualify. Marital deductions, living expenses and debts could reduce your income and help you drop into the qualifying range.

Fighting Charges of Presumption of Abuse

Our bankruptcy attorneys in Tampa can defend you against charges of presumption of abuse. Some special circumstances, such as someone with a serious medical problem, a disabled veteran, someone with business debts or active duty status in the military, will exclude you from these charges. You will need to provide paperwork and proof to back up your claims for an exemption. You only have 10 days to file the documentation before the clerk reports the presumption of abuse to your creditors. Your case could be dismissed for failure to respond to a rebuttal. However, it might also be dismissed on the grounds that it was filed in bad faith or if the overall circumstances of the case show abuse of the system.

Contact Bankruptcy Attorneys in Tampa

If you have questions about the presumption of abuse and how it might apply in your case, call our bankruptcy attorneys in Tampa. You can reach Robert Savage at 813-200-0013.

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