The Means Test Is Used to Determine Whether ________

question 32

Multiple Choice

The means test is used to determine whether ________.

• A) the debtor's median family income is less than the state's median family income
• B) the debtor's median family income is more than the state's median family income
• C) the debtor has the capability to pay prepetition debts out of postpetition income
• D) the debtor would qualify to file for bankruptcy under Chapter 13

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Definitions:

Owners' Equity

Represents the residual interest in the assets of a company after deducting its liabilities.

Earnings Per Share

A financial metric that measures the amount of net income earned for each share of a company's common stock.

Net Income

The amount of earnings left over for a company after all expenses and taxes have been subtracted from revenues.

Original Sale

The initial sale of a product or service from a producer or provider to the first purchaser or consumer.