Issue link: https://mbozikis.ufcontent.com/i/1422521
43 § 707(b)(1). Two kinds of "safe harbors" exist with respect to the Chapter 7 means test. In general, these safe harbors limit who may file a Section 707(b) motion to dismiss or convert the debtor's case. First, only a judge or the U.S. Trustee may file a Section 707(b) motion if the current monthly income of (i) the debtor or (ii) in a joint case, the debtor and his or her spouse is equal to or less than the applicable State median family income for a family of equal or lesser size. Second, no one can file a Section 707(b) motion if the current monthly income of the debtor and his or her spouse combined (whether in a joint case or otherwise) is equal to or less than the applicable State median family income for a family of equal or lesser size. The court may presume the existence of an abuse of the provisions of Chapter 7 if the debtor's current monthly income reduced by certain amounts discussed below and multiplied by sixty, is not less than the lesser of (i) 25% of the debtor's nonpriority unsecured claims in the case, or $8,175, whichever is greater or (ii) $13,650. 11 U.S.C. § 707(b)(2)(A)(i). The presumption of abuse can only be rebutted by demonstrating "special circumstances." 11 U.S.C. § 707(b)(2)(B)(i). Although the Bankruptcy Code does not define "special circumstances," Section 707(b) provides two examples: a serious medical condition or a call or order to active duty in the Armed Forces. In determining the debtor's current monthly income, the court shall reduce such income by the following amounts: (i) the applicable monthly expenses of the debtor and his or her spouse and dependents specified under the Internal Revenue Service's National Standards and Local Standards; (ii) the actual monthly expenses of the debtor and his or her spouse and dependents for the categories specified as Other Necessary Expenses by the Internal Revenue Service; (iii) reasonably necessary expenses incurred to maintain the safety of the debtor and his or her family from family violence as specified in applicable Federal law; (iv) reasonably necessary expenses for health and disability insurance for the debtor and his or her spouse and dependents; and (v) the debtor's average monthly payments on account of secured debts