Can Chapter 7 Be Dismissed If You Pass The Means Test?

Jordon Bublick reports in his Miami Florida Bankruptcy Law Blog an interesting court decision about dismissal of Chapter 7 bankruptcy for substantial abuse. Link: ABI Bankruptcy Exchange » Miami Florida Bankruptcy Law. 

A chapter 7 bankruptcy can be dismissed if the debtor is abusing the bankruptcy process, most often because he makes too much money relative to expenses. Most debtor attorneys have argued that the new bankruptcy law makes the "means test" the exclusive test of substantial abuse. If you pass the means test then you qualify for chapter 7 regardless of other analysis of income and expense. Mr. Bublick's blog states that In the case of Perlin v. Hitachi Capital America Corp., ___ F.3d ___, 2007 WL 2215602 (3rd Cir. 2007), the court held that even if you pass the means test a creditor or trustee can move to dismiss your case because you make too much money.