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Article: MEANS TESTING under "Bankruptcy Reform" and Other Anti-Abuse Provisions
- Article from:
- Debt 3
- Article date:
- July 1, 2005
- Author:
CopyrightCopyright Commercial Law League of America Jul/Aug 2005. Provided by ProQuest LLC. (Hide copyright information)
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Perhaps the most important provision in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is the amendment to Bankruptcy Code Section 707(b), which provides for "means testing." Prior to enactment of the 2005 Act (hereafter "B.A.P."), a case under chapter 7 could only be dismissed for "substantial abuse."
GENERAL CONSIDERATIONS
"Means testing" is intended to prevent abuse by debtors, through the use of a much more objective standard.
Means testing does not apply to a disabled veteran, filing chapter 7, who incurred the debt primarily while on active duty or performing homeland defense. See 11 U.S.C. §707(b)(2)(d). Disability is not defined in the statute or Committee ...