Best Efforts Test

Best Efforts Test

In Chapter 13 bankruptcy, one of two conditions that must be fulfilled in the debtor's repayment plan. According to the best efforts test, the debtor must pay unsecured creditors at least an amount equal to his/her monthly disposable income (as calculated when he/she files for bankruptcy) multiplied by either 36 or 60, depending on the whether the debtor makes below or above the median income in his/her state. It should not be confused with best efforts underwriting. See also: Best interest of creditors test.