Is there a means test for Chapter 11 bankruptcy?

Yes, there is a means test for those filing for Chapter 11 bankruptcy in South Carolina. The means test is a way of determining whether the debtor has enough income to pay some of the debt still owed after filing for bankruptcy. The test is used to ensure that those who file for Chapter 11 are unable to pay off their debts in a timely manner and are not just attempting to avoid paying their debts. The test looks at the income and expenses for the last two years and compares them with the median income for the state. If the income is above the median income, then the case will be considered a “presumption of abuse” and the debtor may need to use a different type of bankruptcy, such as Chapter 7. In addition, the means test looks at the debtor’s disposable income, which is the amount of money left after paying expenses. This amount is compared to the Consumer Credit Counseling Service guidelines to figure out whether the debtor is able to make some payments to their creditors. If the debtors disposable income exceeds the guidelines, they may not be eligible for Chapter 11 bankruptcy, and may need to look at other options. The means test is an important step in determining eligibility for Chapter 11 bankruptcy in South Carolina. Those considering filing for bankruptcy should consult with a qualified attorney to ensure they understand the means test requirements and are filing the correct type of bankruptcy.

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Is there a means test for Chapter 11 bankruptcy?

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