The means test Congress created in 2005 to winnow out abusive bankruptcy filings does not apply to debtors who convert to Chapter 7 from Chapters 11 or 13, a U.S. bankruptcy judge says.
Judge Gloria Burns in Newark, N.J., found that the statute unambiguously applies only to cases “filed” under Chapter 7 and that “nothing … indicates that this section was meant to apply to debtors who convert a case under either Chapter 13 or Chapter 11 to Chapter 7.”
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