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PRESUMED ABUSE

TheLaw.com Law Dictionary & Black's Law Dictionary 2nd Ed.

Term used in Chapter 7 bankruptcy, refers to the case when a debtor’s current monthly income exceeds the state’s family median income and the debtor cannot pass the bankruptcy test, leading the court to conclude that there is sufficient income to fund a Chapter 13 plan. If this occurs, the debtor cannot pursue Chapter 7 bankruptcy unless he or she can show that no abuse exists.

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