The court can dismiss a Chapter 7 bankruptcy of an individual whose debts are primarily consumer oriented, when it believes the filing is a substantial abuse of the provisions of the bankruptcy code. You may ask the court to convert to Chapter 13 as an alternative to dismissal.
Concerns debtors who have too much income (given their expenses) to qualify for a Chapter 7 discharge.
The court may dismiss a bankruptcy case on the motion of a U.S. Trustee if the debts are primarily consumer debts and if the Trustee believes that the Chapter 7 petition represents substantial abuse under the Bankruptcy Code. (See Section 707(b) of the Bankruptcy Code.)
A term that refers to actions by a debtor that show the debtor is abusing the bankruptcy laws and does not deserve the protections of the bankruptcy court. The new bankruptcy laws have replaced the concept of "substantial abuse" with the concept of "abuse". The courts will have to interpret what this change in terminology means when applied to actual cases.
dismissal of a chapter 7 filing because income of petitioner is sufficient to service debt.
a term that refers to the abusing of the privilege to file a petition. It usually describes fraud in cases of personal bankruptcy.
The characterization of a bankruptcy case filed by an individual whose debts are primarily consumer debts where the court finds that the granting of relief would be an abuse of chapter 7 because, for example, the debtor can pay its debts.