11 U.S.C. § 707
(a) The court may dismiss a case under this chapter only after notice and a hearing and only for cause, including—
(b)
(2)
(A)
(i) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter, the court shall presume abuse exists if the debtor’s current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv), and multiplied by 60 is not less than the lesser of—
(ii)
(iii) The debtor’s average monthly payments on account of secured debts shall be calculated as the sum of—
divided by 60.
(B)
(ii) In order to establish special circumstances, the debtor shall be required to itemize each additional expense or adjustment of income and to provide—
(iv) The presumption of abuse may only be rebutted if the additional expenses or adjustments to income referred to in clause (i) cause the product of the debtor’s current monthly income reduced by the amounts determined under clauses (ii), (iii), and (iv) of subparagraph (A) when multiplied by 60 to be less than the lesser of—
(D) Subparagraphs (A) through (C) shall not apply, and the court may not dismiss or convert a case based on any form of means testing—
(i) if the debtor is a disabled veteran (as defined in section 3741(1) of title 38), and the indebtedness occurred primarily during a period during which he or she was—
(ii) with respect to the debtor, while the debtor is—
if after , the debtor while a member of a reserve component of the Armed Forces or a member of the National Guard, was called to such active duty or performed such homeland defense activity.
(3) In considering under paragraph (1) whether the granting of relief would be an abuse of the provisions of this chapter in a case in which the presumption in paragraph (2)(A)(i) does not arise or is rebutted, the court shall consider—
(4)
(A) The court, on its own initiative or on the motion of a party in interest, in accordance with the procedures described in rule 9011 of the Federal Rules of Bankruptcy Procedure, may order the attorney for the debtor to reimburse the trustee for all reasonable costs in prosecuting a motion filed under section 707(b), including reasonable attorneys’ fees, if—
(ii) the court—
(B) If the court finds that the attorney for the debtor violated rule 9011 of the Federal Rules of Bankruptcy Procedure, the court, on its own initiative or on the motion of a party in interest, in accordance with such procedures, may order—
(C) The signature of an attorney on a petition, pleading, or written motion shall constitute a certification that the attorney has—
(ii) determined that the petition, pleading, or written motion—
(5)
(A) Except as provided in subparagraph (B) and subject to paragraph (6), the court, on its own initiative or on the motion of a party in interest, in accordance with the procedures described in rule 9011 of the Federal Rules of Bankruptcy Procedure, may award a debtor all reasonable costs (including reasonable attorneys’ fees) in contesting a motion filed by a party in interest (other than a trustee or United States trustee (or bankruptcy administrator, if any)) under this subsection if—
(ii) the court finds that—
(C) For purposes of this paragraph—
(i) the term “small business” means an unincorporated business, partnership, corporation, association, or organization that—
(ii) the number of employees of a wholly owned subsidiary of a corporation includes the employees of—
(6) Only the judge or United States trustee (or bankruptcy administrator, if any) may file a motion under section 707(b), if the current monthly income of the debtor, or in a joint case, the debtor and the debtor’s spouse, as of the date of the order for relief, when multiplied by 12, is equal to or less than—
(7)
(A) No judge, United States trustee (or bankruptcy administrator, if any), trustee, or other party in interest may file a motion under paragraph (2) if the current monthly income of the debtor, including a veteran (as that term is defined in section 101 of title 38), and the debtor’s spouse combined, as of the date of the order for relief when multiplied by 12, is equal to or less than—
(B) In a case that is not a joint case, current monthly income of the debtor’s spouse shall not be considered for purposes of subparagraph (A) if—
(i)
(ii) the debtor files a statement under penalty of perjury—
(c)
(1) In this subsection—
(Pub. L. 95–598, , 92 Stat. 2606; Pub. L. 98–353, title III, §§ 312, 475, , 98 Stat. 355, 381; Pub. L. 99–554, title II, § 219, , 100 Stat. 3100; Pub. L. 105–183, § 4(b), , 112 Stat. 518; Pub. L. 109–8, title I, § 102(a), (f), , 119 Stat. 27, 33; Pub. L. 110–438, § 2, , 122 Stat. 5000; Pub. L. 111–320, title II, § 202(a), , 124 Stat. 3509; Pub. L. 111–327, § 2(a)(25), , 124 Stat. 3560; Pub. L. 113–295, div. B, title I, § 104(b), , 128 Stat. 4064.)
For limited applicability of amendment by Pub. L. 110–438, see Effective Date of 2008 Amendment note below.
Section 707 of the House amendment indicates that the court may dismiss a case only after notice and a hearing.
This section authorizes the court to dismiss a liquidation case only for cause, such as unreasonable delay by the debtor that is prejudicial to creditors or nonpayment of any fees and charges required under chapter 123 [§ 1911 et seq.] of title 28. These causes are not exhaustive, but merely illustrative. The section does not contemplate, however, that the ability of the debtor to repay his debts in whole or in part constitutes adequate cause for dismissal. To permit dismissal on that ground would be to enact a non-uniform mandatory chapter 13, in lieu of the remedy of bankruptcy.
Section 302 of the Family Violence Prevention and Services Act, referred to in subsec. (b)(2)(A)(ii)(I), is classified to section 10402 of Title 42, The Public Health and Welfare.
The Internal Revenue Code of 1986, referred to in subsec. (b)(2)(A)(ii)(II), is classified generally to Title 26, Internal Revenue Code.
The Federal Rules of Bankruptcy Procedure, referred to in subsec. (b)(4)(A), (B), (5)(A), are set out in the Appendix to this title.
2014—Subsec. (b)(2)(A)(ii)(II). Pub. L. 113–295 inserted at end “Such monthly expenses may include, if applicable, contributions to an account of a qualified ABLE program to the extent such contributions are not excess contributions (as described in section 4973(h) of the Internal Revenue Code of 1986) and if the designated beneficiary of such account is a child, stepchild, grandchild, or stepgrandchild of the debtor.”
2010—Subsec. (a)(3). Pub. L. 111–327, § 2(a)(25)(A), substituted “521(a)” for “521”.
Subsec. (b)(2)(A)(ii)(I). Pub. L. 111–320 substituted “section 302 of the Family Violence Prevention and Services Act” for “section 309 of the Family Violence Prevention and Services Act”.
Subsec. (b)(2)(A)(iii)(I). Pub. L. 111–327, § 2(a)(25)(B)(i), inserted “of the filing” after “date”.
Subsec. (b)(3). Pub. L. 111–327, § 2(a)(25)(B)(ii), substituted “paragraph (2)(A)(i)” for “subparagraph (A)(i) of such paragraph” in introductory provisions.
2008—Subsec. (b)(2)(D). Pub. L. 110–438 substituted “testing—” for “testing,” in introductory provisions, inserted cl. (i) designation before “if the debtor”, redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, of cl. (i) and added cl. (ii).
2005—Pub. L. 109–8, § 102(a)(1), substituted “Dismissal of a case or conversion to a case under chapter 11 or 13” for “Dismissal” in section catchline.
Subsec. (b). Pub. L. 109–8, § 102(a)(2), designated existing provisions as par. (1), substituted “trustee (or bankruptcy administrator, if any), or” for “but not at the request or suggestion of” and “an abuse” for “a substantial abuse”, inserted “, or, with the debtor’s consent, convert such a case to a case under chapter 11 or 13 of this title,” after “consumer debts”, struck out “There shall be a presumption in favor of granting the relief requested by the debtor.” before “In making”, and added pars. (2) to (7).
Subsec. (c). Pub. L. 109–8, § 102(f), added subsec. (c).
1998—Subsec. (b). Pub. L. 105–183 inserted at end “In making a determination whether to dismiss a case under this section, the court may not take into consideration whether a debtor has made, or continues to make, charitable contributions (that meet the definition of ‘charitable contribution’ under section 548(d)(3)) to any qualified religious or charitable entity or organization (as that term is defined in section 548(d)(4)).”
1986—Subsec. (a)(3). Pub. L. 99–554, § 219(a), added par. (3).
Subsec. (b). Pub. L. 99–554, § 219(b), substituted “motion or on a motion by the United States trustee, but” for “motion and”.
1984—Pub. L. 98–353 designated existing provisions as subsec. (a) and in pars. (1) and (2) substituted “or” for “and”, and added subsec. (b).
Amendment by Pub. L. 113–295 applicable with respect to cases commenced under this title on or after , see section 104(d) of Pub. L. 113–295, set out as a note under section 521 of this title.
Pub. L. 110–438, § 4, , 122 Stat. 5002, as amended by Pub. L. 112–64, § 2, , 125 Stat. 766; Pub. L. 114–107, § 2, , 129 Stat. 2223; Pub. L. 116–53, § 2, , 133 Stat. 1078; Pub. L. 118–24, § 2, , 137 Stat. 128, provided that:
- “(a) Effective Date.— Except as provided in subsection (b), this Act [amending this section and enacting provisions set out as a note under section 101 of this title] and the amendments made by this Act shall take effect 60 days after the date of enactment of this Act [].
- “(b) Application of Amendments.— The amendments made by this Act [amending this section] shall apply only with respect to cases commenced under title 11 of the United States Code in the 19-year period beginning on the effective date of this Act.”
Amendment by Pub. L. 109–8 effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Amendment by Pub. L. 105–183 applicable to any case brought under an applicable provision of this title that is pending or commenced on or after , see section 5 of Pub. L. 105–183, set out as a note under section 544 of this title.
Effective date and applicability of amendment by Pub. L. 99–554 dependent upon the judicial district involved, see section 302(d), (e) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Pub. L. 109–8, title I, § 107, , 119 Stat. 42, provided that:
“For purposes of
section 707(b) of title 11, United States Code, as amended by this Act, the Director of the Executive Office for United States Trustees shall, not later than 180 days after the date of enactment of this Act [
Apr. 20, 2005], issue schedules of reasonable and necessary administrative expenses of administering a chapter 13 plan for each judicial district of the United States.”
United States Supreme Court to prescribe general rules implementing the practice and procedure to be followed under subsec. (b) of this section, with section 2075 of Title 28, Judiciary and Judicial Procedure, to apply with respect to such general rules, see section 320 of Pub. L. 98–353, set out as a note under section 2075 of Title 28.
The dollar amounts specified in this section were adjusted by notices of the Judicial Conference of the United States pursuant to section 104 of this title as follows:
By notice dated , 90 F.R. 8941, effective , in subsec. (b)(2)(A)(i)(I), dollar amount “9,075” was adjusted to “10,275”; in subsec. (b)(2)(A)(i)(II), dollar amount “15,150” was adjusted to “17,150”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “2,275” was adjusted to “2,575”; in subsec. (b)(2)(B)(iv)(I), dollar amount “9,075” was adjusted to “10,275”; in subsec. (b)(2)(B)(iv)(II), dollar amount “15,150” was adjusted to “17,150”; in subsec. (b)(5)(B), dollar amount “1,525” was adjusted to “1,725”; in subsec. (b)(6)(C), dollar amount “825” was adjusted to “925”; and, in subsec. (b)(7)(A)(iii), dollar amount “825” was adjusted to “925”. See notice of the Judicial Conference of the United States set out as a note under section 104 of this title.
By notice dated , 87 F.R. 6625, effective , in subsec. (b)(2)(A)(i)(I), dollar amount “8,175” was adjusted to “9,075”; in subsec. (b)(2)(A)(i)(II), dollar amount “13,650” was adjusted to “15,150”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “2,050” was adjusted to “2,275”; in subsec. (b)(2)(B)(iv)(I), dollar amount “8,175” was adjusted to “9,075”; in subsec. (b)(2)(B)(iv)(II), dollar amount “13,650” was adjusted to “15,150”; in subsec. (b)(5)(B), dollar amount “1,375” was adjusted to “1,525”; in subsec. (b)(6)(C), dollar amount “750” was adjusted to “825”; and, in subsec. (b)(7)(A)(iii), dollar amount “750” was adjusted to “825”.
By notice dated , 84 F.R. 3488, effective , in subsec. (b)(2)(A)(i)(I), dollar amount “7,700” was adjusted to “8,175”; in subsec. (b)(2)(A)(i)(II), dollar amount “12,850” was adjusted to “13,650”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “1,925” was adjusted to “2,050”; in subsec. (b)(2)(B)(iv)(I), dollar amount “7,700” was adjusted to “8,175”; in subsec. (b)(2)(B)(iv)(II), dollar amount “12,850” was adjusted to “13,650”; in subsec. (b)(5)(B), dollar amount “1,300” was adjusted to “1,375”; in subsec. (b)(6)(C), dollar amount “700” was adjusted to “750”; and, in subsec. (b)(7)(A)(iii), dollar amount “700” was adjusted to “750”.
By notice dated , 81 F.R. 8748, effective , in subsec. (b)(2)(A)(i)(I), dollar amount “7,475” was adjusted to “7,700”; in subsec. (b)(2)(A)(i)(II), dollar amount “12,475” was adjusted to “12,850”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “1,875” was adjusted to “1,925”; in subsec. (b)(2)(B)(iv)(I), dollar amount “7,475” was adjusted to “7,700”; in subsec. (b)(2)(B)(iv)(II), dollar amount “12,475” was adjusted to “12,850”; in subsec. (b)(5)(B), dollar amount “1,250” was adjusted to “1,300”; in subsec. (b)(6)(C), dollar amount “675” was adjusted to “700”; and, in subsec. (b)(7)(A)(iii), dollar amount “675” was adjusted to “700”.
By notice dated , 78 F.R. 12089, effective , in subsec. (b)(2)(A)(i)(I), dollar amount “7,025” was adjusted to “7,475”; in subsec. (b)(2)(A)(i)(II), dollar amount “11,725” was adjusted to “12,475”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “1,775” was adjusted to “1,875”; in subsec. (b)(2)(B)(iv)(I), dollar amount “7,025” was adjusted to “7,475”; in subsec. (b)(2)(B)(iv)(II), dollar amount “11,725” was adjusted to “12,475”; in subsec. (b)(5)(B), dollar amount “1,175” was adjusted to “1,250”; in subsec. (b)(6)(C), dollar amount “625” was adjusted to “675”; and, in subsec. (b)(7)(A)(iii), dollar amount “625” was adjusted to “675”.
By notice dated , 75 F.R. 8747, effective , in subsec. (b)(2)(A)(i)(I), dollar amount “6,575” was adjusted to “7,025”; in subsec. (b)(2)(A)(i)(II), dollar amount “10,950” was adjusted to “11,725”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “1,650” was adjusted to “1,775”; in subsec. (b)(2)(B)(iv)(I), dollar amount “6,575” was adjusted to “7,025”; in subsec. (b)(2)(B)(iv)(II), dollar amount “10,950” was adjusted to “11,725”; in subsec. (b)(5)(B), dollar amount “1,100” was adjusted to “1,175”; in subsec. (b)(6)(C), dollar amount “575” was adjusted to “625”; and, in subsec. (b)(7)(A)(iii), dollar amount “575” was adjusted to “625”.
By notice dated , 72 F.R. 7082, effective , as amended by notice dated , 72 F.R. 15162, in subsec. (b)(2)(A)(i)(I), dollar amount “6,000” was adjusted to “6,575”; in subsec. (b)(2)(A)(i)(II), dollar amount “10,000” was adjusted to “10,950”; in subsec. (b)(2)(A)(ii)(IV), dollar amount “1,500” was adjusted to “1,650”; in subsec. (b)(2)(B)(iv)(I), dollar amount “6,000” was adjusted to “6,575”; in subsec. (b)(2)(B)(iv)(II), dollar amount “10,000” was adjusted to “10,950”; in subsec. (b)(5)(B), dollar amount “1,000” was adjusted to “1,100”; in subsec. (b)(6)(C), dollar amount “525” was adjusted to “575”; and, in subsec. (b)(7)(A)(iii), dollar amount “525” was adjusted to “575”.
1 See Adjustment of Dollar Amounts notes below.