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 Tennessee, as in other states, the means test is a requirement for debtors who wish to file for Chapter 7 bankruptcy and whose income is above the state median. The means test is designed to determine whether a debtor has enough disposable income to repay some of their debts. If a debtor's adjusted current monthly income over five years exceeds $12,850, or 25% of their nonpriority unsecured debt (provided that this amount is at least $7,700), then the filing is considered presumptively abusive. This presumption of abuse means that the bankruptcy filing may not be in good faith. A debtor can challenge this presumption by demonstrating special circumstances that would allow for additional expenses or adjustments to income. If the debtor cannot rebut the presumption, the bankruptcy case will likely be converted to a Chapter 13 bankruptcy, where a repayment plan is established, or the case may be dismissed. It's important for debtors to consult with an attorney to navigate the complexities of the means test and to understand the implications for their bankruptcy case.