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How Does the 2005 Act Reduce the Number of Debtors

Question 37

Multiple Choice

How does the 2005 act reduce the number of debtors who qualify for Chapter 7 liquidation bankruptcy?


A) It added two new tests, the median income test and the means test, to determine whether a debtor qualifies.
B) It used the employment history of debtors to determine their approximate postpetition income.
C) It used new methods to determine whether the debtors are providing False information regarding their financial position.
D) It made the Chapter 7 liquidation procedures tougher in order to discourage debtors from opting for it.

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