A court can dismiss a Chapter 7 petition if it finds that the use of Chapter 7 would constitute substantial abuse.

Question

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This is true according to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which allows courts to dismiss a Chapter 7 petition if the debtor's income exceeds the state median income and they are able to pay back at least a portion of their debts through a Chapter 13 bankruptcy instead. This is known as the "means test" and is one way to determine if the use of Chapter 7 would be considered substantial abuse.

A Court Can Dismiss a Chapter 7 Petition If It