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Question
After you’ve filled out income, deduction, expense, and debt information for the debtor(s), you can review the determination of whether a presumption of abuse exists for Chapter 7 cases.
1. In the main menu bar, select Client>Form B22...
2. In the Statement of Current Monthly Income... window, select the Summary tab:
- If the tab appears green, the presumption of abuse DOES NOT arise for the debtor(s).
- If the tab appears red, the presumption of abuse DOES arise for the debtor(s).
3. In the Part VI. DETERMINATION OF §707(b)(2) PRESUMPTION window, review the summary, using the following information:
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#
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Line
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Description or action
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48
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Current monthly income for §707(b)(2)
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The debtor’s average monthly income for the 6-month income-inclusive period. It is the same as the Current monthly income …on the Income tab.
For more information, see How do I review the analysis of total monthly income in the means test?
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49
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Total of all deductions allowed under §707(b)(2)
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The sum of all the deductions you entered on the IRS Standards, Other, and Add'l Exp tabs.
For more information, see
How do I add IRS standard deduction information to Form B22?
How do I edit secured and prior debt information to Form B22?
How do I add additional expense claims to Form B22?
How do I add Chapter 13 administrative expenses and § 1325(b)(2) deductions to Form B22?
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50
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Monthly disposable income under §707(b)(2)
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The current monthly income minus the total allowed deductions.
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51
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60-month disposable income under §707(b)(2)
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The debtor’s disposable income multiplied by 60.
- If this amount is less than $6,000, presumption of abuse does not arise, and EZ-Filing check-marks The presumption does not arise box, and does not display amounts for … non-priority unsecured debt and Threshold debt payment amount.
- If this amount is more than $10,000, presumption of abuse arises, and EZ-Filing check-marks The presumption arises box, and displays amounts for … non-priority unsecured debt and Threshold debt payment amount.
- If this amount is at least $6,000 but no more than $10,000, more information (namely the threshold debt payment amount) is required to determine whether presumption of abuse arises. Consequently EZ-Filing check-marks the third box on Line 52, and displays amounts for … non-priority unsecured debt and Threshold debt payment amount.
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52
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Initial presumption determination
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EZ-Filing check-marks the appropriate statement on the Summary tab.
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53
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Amount of your non-priority unsecured debt
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The debtor’s unsecured non-priority claims are relevant to the means test pursuant to § 707(b)(2)(A(i).
- If the debtor’s 60-month disposable income is between $6,000 and $10,000, inclusive, this line displays the amount you entered in the Total unsecured nonpriority claims text box.
- If the debtor’s 60-month disposable income is at least $6,000 but no more than $10,000, this line displays the amount displayed in the Total unsecured nonpriority claims field.
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54
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Threshold debt payment amount
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To derive the amount displayed, EZ-Filing multiplies the nonpriority unsecured debt amount by 0.25.
- If the 60-month disposable income amount is less than the amount on this line, presumption of abuse does not arise, and EZ-Filing check-marks The presumption does not arise box.
- If the 60-month disposable income amount is equal to or greater than the amount on this line, presumption of abuse arises, and EZ-Filing check-marks The presumption arises box.
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55
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Secondary presumption determination
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EZ-Filing check-marks the appropriate statement on the Summary tab.
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4. Click OK to close the window.
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