Verna files a petition in bankruptcy in a liquidation proceeding.If the court administers the means test and concludes that Verna is abusing the bankruptcy process by filing for a liquidation,the court will most likely

Question

Quizplus · Accepted Answer

If the court determines that Verna is abusing the bankruptcy process by filing for liquidation, they may force her to file for relief through an individual repayment plan instead. This is because liquidation bankruptcy is intended for those who are unable to repay their debts, and the means test is used to determine if the filer has the ability to repay some or all of their debt through a repayment plan. If the court finds that Verna does have the ability to repay her debts through a repayment plan, it would be considered an abuse of the system to file for liquidation.

Verna Files a Petition in Bankruptcy in a Liquidation Proceeding