19 Questions
What is the purpose of the Means test in chapter 7 bankruptcy?
To determine if the debtor has enough disposable income to pay their debts
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
What is the threshold for the debtor's current monthly income (CMI) to pass the Means test?
$13,650
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
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
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
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
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
What does the court use to determine how much the debtor can pay over the next 5 years?
Disposable income multiplied by 60
Under BAPCPA, what can lead to the dismissal of a consumer debtor’s chapter 7 proceeding?
Presumption of abuse
What modification was made to BAPCPA 707(b) regarding the granting of a discharge?
Changed from 'substantial' to 'any' abuse
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
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
What is the specific threshold mentioned in the text that leads to a presumption of abuse?
$8,175
What must the debtor do if the presumption of abuse arises?
Rebut the presumption
What is the goal of BAPCPA according to the text?
Prevent the bankruptcy process from being abused
What is the court's consideration regarding the debtor's inability to pay?
Whether the debtor’s inability to pay is self-imposed
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
What must the client have done before seeking help with a chapter 7 according to the text?
Made reasonable efforts to achieve gainful employment
Test your knowledge of Wisconsin's bankruptcy laws with this quiz on the means test for Chapter 7 bankruptcy. Check if you understand the criteria for debt counseling, annual income limits, and special circumstances that may affect eligibility.
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