If a debtor's income falls below the median income in the area in which the debtor lives,there is a presumption of bankruptcy abuse.

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If a debtor's income falls below the median income in the area, this creates a presumption of eligibility for Chapter 7 bankruptcy, not a presumption of abuse. The abuse determination is based on other factors, such as the debtor's expenses and ability to repay creditors.

If a Debtor's Income Falls Below the Median Income in the Area