Under the 2005 Act,a debtor may be given only a partial fresh start as he or she may have to pay more of his or her pre-petition bankruptcy debts out of post-petition earnings.

Question

Quizplus · Accepted Answer

This statement is true. The 2005 Act introduced the concept of a "means test" which determines a debtor's ability to repay their debts. If the means test shows that the debtor has sufficient income to repay a portion of their pre-petition debts, then they may not be eligible for a full fresh start and may have to repay some of their debts out of their post-petition earnings.

Under the 2005 Act,a Debtor May Be Given Only a Partial