Wisconsin Chapter 7 Bankruptcy Means Test Quiz

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What is the purpose of the Means test in chapter 7 bankruptcy?

To evaluate the debtor's assets for liquidation

To calculate the total debt amount of the debtor

To assess the debtor's eligibility for filing under chapter 7

To determine if the debtor has enough disposable income to pay their debts (correct)

How is the debtor's current monthly income (CMI) calculated for the Means test?

An average of their monthly income over a 6-month period preceding the bankruptcy filing, excluding Social Security (correct)

The income of the debtor's spouse included in the calculation

The total income at the time of bankruptcy filing

An average of their monthly income over a 12-month period including Social Security

What is the threshold for the debtor's current monthly income (CMI) to pass the Means test?

$15,000

$10,000

$13,650 (correct)

$20,000

What are the choices for an individual debtor under chapter 7 bankruptcy if they have mainly consumer debt?

Give up all exempt assets to creditors and immediately receive a discharge Signup and view all the answers

What happens if the debtor's income is less than the median income for their state, taking into account the size of their family?

They qualify for relief under Chapter 7 Signup and view all the answers

What is the calculation for the debtor's current monthly income (CMI) if they are preparing to file for bankruptcy?

An average of their monthly income over a 6-month period preceding the bankruptcy filing, excluding Social Security Signup and view all the answers

When does a debtor have to file for relief under Chapter 13 instead of Chapter 7?

If their income is greater than the median income for their state Signup and view all the answers

What determines the duration of the repayment plan for debtors who qualify for relief under Chapter 7?

Their income in relation to the median income for their state Signup and view all the answers

What does the court use to determine how much the debtor can pay over the next 5 years?

Disposable income multiplied by 60 Signup and view all the answers

Under BAPCPA, what can lead to the dismissal of a consumer debtor’s chapter 7 proceeding?

Presumption of abuse Signup and view all the answers

What modification was made to BAPCPA 707(b) regarding the granting of a discharge?

Changed from 'substantial' to 'any' abuse Signup and view all the answers

What reason can lead to the court dismissing a chapter 7 case even if the debtor passes the means test?

Filing the ch. 7 petition in bad faith Signup and view all the answers

What does the court consider when determining the debtor's ability to pay her creditors?

Debtor’s ability to pay as of the date of the hearing Signup and view all the answers

What is the specific threshold mentioned in the text that leads to a presumption of abuse?

$8,175 Signup and view all the answers

What must the debtor do if the presumption of abuse arises?

Rebut the presumption Signup and view all the answers

What is the goal of BAPCPA according to the text?

Prevent the bankruptcy process from being abused Signup and view all the answers

What is the court's consideration regarding the debtor's inability to pay?

Whether the debtor’s inability to pay is self-imposed Signup and view all the answers

What can lead to the dismissal of a chapter 7 case if discharge is allowed?

Totality of the circumstances of the debtor’s financial situation demonstrates abuse Signup and view all the answers

What must the client have done before seeking help with a chapter 7 according to the text?

Made reasonable efforts to achieve gainful employment Signup and view all the answers

Wisconsin Chapter 7 Bankruptcy Means Test Quiz

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