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 Washington state, as per the federal Bankruptcy Code, if a debtor's current monthly income exceeds the state median, they must undergo the means test to determine if their Chapter 7 bankruptcy filing is considered presumptively abusive. The means test calculates whether the debtor's income over the next five years, minus allowable expenses, is either more than $12,850 or 25% of their nonpriority unsecured debt, provided that this amount is at least $7,700. If the test indicates abuse, the debtor has the opportunity to demonstrate special circumstances that could account for higher expenses or income adjustments. Failing to rebut the presumption of abuse typically results in the bankruptcy case being converted to a Chapter 13 filing, with the debtor's agreement, or being dismissed outright.