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by tedivm 1879 days ago
Chapter 7 has an abuse provision which people also have to pass or the bankruptcy can be turned into a Chapter 11 or Chapter 13 (or gets dismissed outright).

To quote the law directly-

> After notice and a hearing, the court, on its own motion or on a motion by the United States trustee, trustee (or bankruptcy administrator, if any), or any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts, or, with the debtor’s consent, convert such a case to a case under chapter 11 or 13 of this title, if it finds that the granting of relief would be an abuse of the provisions of this chapter.

11 U.S.C. § 707(b)(1)

1 comments

Do you know how often this has been used and isn’t some dead piece of law never cited (like a lot of law is)?