Means Test | Practical Law

Means Test | Practical Law

Means Test

Means Test

Practical Law Glossary Item 9-501-5860 (Approx. 2 pages)

Glossary

Means Test

A test for determining whether to presume a bankruptcy debtor's filing under Chapter 7 is an abuse of the Bankruptcy Code that calls for converting or dismissing the case. Conduct is presumed to be abusive where the debtor's aggregate monthly income over five years surpasses certain thresholds. However, the presumption is rebuttable when circumstances justify the debtor's adjustments or expenses.