Is there a means test for Chapter 11 bankruptcy?

Yes, there is a means test for Chapter 11 bankruptcy in New Hampshire. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) amended the Bankruptcy Code to require that a debtor in a chapter 11 bankruptcy must pass a means test to qualify for a chapter 11 reorganization. As in all other types of consumer bankruptcy, the means test ensures that the chapter 11 debtor has the financial means to reorganize and not just discharge their debts. In the case of a chapter 11 bankruptcy, the means test determines whether the debtor may proceed with the reorganization plan or must liquidate it under chapter 7. The means test uses the debtor’s gross income, living expenses, and disposable income to assess whether the debtor has the capacity for repayment. The means test also considers the total amount of debt owed by the debtor, as well as the debtor’s assets, to determine whether the debtor is truly unable to pay their debts. If the debtor can demonstrate that their debt is greater than their assets and they are unable to afford a repayment plan, then they can move forward with the chapter 11 bankruptcy process. The means test not only protects the debtor from failing to reorganize, but also protects creditors from having their claims discharged without payment.

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Is there a means test for Chapter 11 bankruptcy?

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