Which of the following tests might a court use to determine whether or not to dismiss a debtor's bankruptcy petition?
A) The means test
B) The assets test
C) The median test
D) The liquidation test
E) The bankruptcy test

Question

Quizplus · Accepted Answer

The means test is used by courts to determine whether an individual debtor's bankruptcy petition under Chapter 7 of the Bankruptcy Code should be dismissed due to the debtor's ability to repay creditors. This test compares the debtor's income to the median income for a household of the same size in the debtor's state; if the debtor's income is above the median, further analysis is conducted to determine if the petition should be dismissed for abuse.

Which of the Following Tests Might a Court Use to Determine