A case also may be dismissed, after notice and a hearing, if the bankruptcy petition was filed by an individual debtor with primarily consumer debts under circumstances constituting a substantial abuse of relief under Chapter 7. [B.C. §707(b)] In re Kelly, 841 F.2d 908 (9th Cir. 1988)] The motion to dismiss must be filed by the United States trustee or must be made sua sponte by the court; a dismissal under this provision cannot be initiated by a motion or suggestion of a party in interest. (B.C. §707(b)) but see In re Clark, 927 F.2d 793 (4th Cir. 1991)— motion can be filed by United States trustee even though initially suggested by a creditor.

a. Criteria:  The courts have considered the following factors in deciding whether to dismiss a Chapter 7 case on the ground of substantial abuse [B.C. §707(b)] In re Newsom, 69 Bankr. 801 (Bankr. D.N.D. 1987)]:

(1) The probability that the debtor's future expected income will be sufficient to pay a significant percentage of the unsecured claims under a Chapter 13 plan

(2) The debtor's reason for filing the Chapter 7 petition, e.g., because of unemployment, medical expenses, disability, or other misfortune;

(3) The extent to which the debtor obtained cash advances and made consumer purchases beyond her ability to repay,

(4) The excessiveness or extravagance of the debtor's anticipated family budget; and

(5) The extent to which the debtor's income statement misrepresents her actual financial condition.

b. Presumption: There is a statutory presumption in the debtor's favor regarding the question of whether granting relief would be a substantial abuse of Chapter. [B.C. §707(b)]

Chapter 7 discharge