No means test - Business chapter 7

[akame5150]

I filed for a chapter 7 in October. I am 22 days into my 60 day waiting period. UGH!!!! I have several pieces of rental property I am surrendering in my BK. For tax purposes I formed an LLC and did all of my rental property business through my LLC. Obviously my LLC lost a lot of money due to all the real estate problems. My attorney told me I do not have to do the means test because it was not primarily consumer debt. He said it will make my BK actually go smoother and less of a chance of an objection. The case trustee at the 341 meeting did not blink an eye at how the case was filed and had no problems with any paperwork.

Has anyone filed a personal BK this way or does anyone have any thoughts on this? I am just wondering why it would make it easier and why there would be less chance of an objection.

[BROKENN]

We filed C7 Business and all went smooth. Check Pacer for a trustee update. That will give you the real story. I haven't seen any difference for one or the other. Just how the numbers flow

[myid4u2c]

I filed a non-consumer C7 and it went very smooth. Based on my income I would not have qualified for a C7 if it was consumer case. It is still nerve-racking until you get your discharge.

[Tom_Mi]

We just filed non-consumer last friday (3 apt buildings that went into the dumper).
341 is Feb 4...crossing my fingers!



Since this thread is attracting similar people...have any of you thought about having an angel sweep in and grab maybe your 1 viable property at a discount? One of my 3 is really solid, I just screwed myself financing the other 2 and they wiped me out.

[akame5150]

Thanks for all the replys. I appreciate this forum and all of your input. Tom, I am in almost the same situation. Four of mine are solid, but the three bad ones ruined me financially. I was comptemplating keeping the three, however I would not take that chance in case one of those went bad after I filed BK. My 341 went very smooth even as a non-consumer filing. As myid4 indicated, I would not have qualified otherwise.

Thanks again.

[CGH]

Good Information

Hello,
My situation is similiar. I have an Ohio LLC (retail business) that is closing. Almost all of our debt, even that which was borrowed personally, is business debt. I was sweating the means test a little, and still am, but feel a bit better about it. My biggest concern is that I am looking for work now, and have some high-income possibilities. I could end up having to show what will look like high income for a short part of my 6 month "look back." The irony is that, even with the new income, I could never cover all of the debt.
To hear that there may be an alternativre to the standard means test in my situation could really help. Does anyone know if that's state-dependent? Would it apply in Ohio?
My attorney is excellent, but most of my questions get answered by a paralegal who doesn't get very specific.
Thanks!

[BROKENN]

What you need to ask your atty about future income when doing this type of BK and closing a business, trustee will be concerned about future income. Big salary might make them go to a C13. We are kind of opposite, no means but future. After 341 all is well