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 | | | |  | | An argument for Personal Bankruptcy
Bankruptcy is not, in any sense of the term, an “easy way out.” The bankruptcy code was amended in 2005 to include, among other notable provisions, the “means test.” The means test simply calculates a chapter 7 debtor’s current monthly income, and if that income level is greater then the state median income, then the debtor is a presumed abuser and will be required to convert his/her case to a chapter 13 reorganization. Furthermore, the fraudulent conveyance preference provisions will let creditors undo transactions between the debtor and a third party aimed at hiding assets from creditors. Lastly, a debtor who fraudulent obtains credit, or who enters into bankruptcy in bad faith, may find his/her debts declared non-dischargeable, and will have to pay those debts in full. | 1 Cred | 1 Crud | | | | | | |  | | | |  |
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