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Understanding the Means Test for Bankruptcy Filing...

With the passage of the BAPCPA in 2005, bankruptcy has become more complicated. The means test is one of the components of a bankruptcy filing. Prior to 2005, Congress claimed that so many Americans were exploiting the bankruptcy system and wanted to make filing for bankruptcy more difficult. To do this, they invented the means test. The means test can be perplexing to someone who is unfamiliar with the modern bankruptcy filing process. The majority of people do it in the same way they would traditional accounting. In reality, an accountant is the person who is most perplexed by the new procedure. It’s difficult for them to get past the peculiar manner in which income is calculated. about it To comprehend the bankruptcy filing means exams, one must first realise that they are nothing more than a financial formula. Trying to solve the problem with accounting and arithmetic won’t succeed. You’ll need to learn how to use the bankruptcy means test formula to plug in the numbers. The aim of the means test is to enable the court to determine if a person is capable of repaying any or all of their debts. If the bankruptcy court decides that a person should pay off any of their debts based on the means test, they will be required to file a Chapter 13 bankruptcy rather than a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, the formula is also used...