If the debtor's current monthly income is more than the state median, the Bankruptcy Code requires application of a means test to determine whether the chapter 7 filing is presumptively abusive. Abuse is presumed if the debtor's aggregate current monthly income over 5 years, net of certain statutorily allowed expenses, is more than (i) $12,850, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $7,700.

The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless the debtor overcomes the presumption of abuse, the case will generally be converted to chapter 13 (with the debtor's consent) or will be dismissed.

In Alaska, if a debtor's current monthly income exceeds the state median, the Bankruptcy Code mandates the use of a means test to assess whether a Chapter 7 bankruptcy filing is presumptively abusive. The presumption of abuse arises if, after deducting allowable expenses, the debtor's income over a five-year period is more than $12,850, or 25% of their nonpriority unsecured debt, provided that this amount is at least $7,700. To counter the presumption of abuse, the debtor must demonstrate special circumstances that warrant additional expenses or adjustments to income. If the debtor cannot rebut the presumption, the bankruptcy case will typically be converted to a Chapter 13 bankruptcy, with the debtor's agreement, or the case may be dismissed.