Want to file Ch 7

[djfree]

[Amy26]

So, you're over the median income with 1,500 left over after bills?

[Calthius]

Is your debt mainly business or consumer. That will make a difference. If the debt is mainly business debt then the means test does not apply.

[djfree]

consumer debt...we have some unsecured personal loans, credit cards, and the 225k the landlord is pursuing is also personal because we signed a personal guarantee ...

to Amy---Yes we would have about 1500 left over if we were to dismiss our unsecured debt and only pay our secured debt and student loans...

thanks!

[Calthius]

The 225 would not be personal it was for the business. You personally guaranteed it but it was for a business purpose.

My guess is that alone would make it mainly business debt. I also had several things that were personal guaranteed from a business. But the debt was incurred for a business.

[djfree]

The 225 would not be personal it was for the business. You personally guaranteed it but it was for a business purpose.

My guess is that alone would make it mainly business debt. I also had several things that were personal guaranteed from a business. But the debt was incurred for a business.

So how does this effect me in regards to filing?

[Calthius]

You need to meet with an attorney and let him know which debts are from the business in nature and which are consumer in nature. This could possibly exempt you from the means test if the debts are primarily Business oriented.

When considering what is business and what is personal take account any CC that were business cards, leases that you personally guaranteed for the business and other business related debt.

The means test applies only if the debts are primarily consumer in nature.

[shabam]

I ch 13 may be a safer route to take.

[Amy26]

consumer debt...we have some unsecured personal loans, credit cards, and the 225k the landlord is pursuing is also personal because we signed a personal guarantee ...

to Amy---Yes we would have about 1500 left over if we were to dismiss our unsecured debt and only pay our secured debt and student loans...

thanks!

Sorry I was asking if you were over the median as well... I can't really answer your question but I have a question... Cause even if your business debt is treated separately from your consumer debt, wouldn't the fact that if you stopped paying all your bills, are over the median and have 1,500 left over mean that they need to file a 13?

1,500 DMI is a lot to make up for in coming up with other expenses. Are you sure you have calculated your expenses correctly? Have you included food, utilities, insurance, transportation etc?

[Calthius]

No the means test would not apply in any way if the debts were considered primarily business. You can file a Chp. 7 without having to be concerned with how much income is left over. Now of course the business will be liquidated if it is still in operation. But if it has closed already then that doesn't matter.

Was the business a corporation, partnership or were you the sole owner?

http://www.mn-bankruptcy.com/chapter7.html

Check out that link it explains it.

[keepmine]

You can file a Chp. 7 without having to be concerned with how much income is left over

This is not correct. You still need to fill out schedules I and j to determine the DMI that may be available to fund a Chapter 13.

[debtmonster]

NOOOOOOOOOOOO! Don't just throw your hands up and file a Ch. 13! Start a home business and start spending money on advertising. You can E-A-S-I-L-Y throttle your income down by doing this. When you file your Schedule C in turbo tax, all money you spend on promoting your business comes right off the top. So if you made $60,000 last year and you spent $15,000 in promoting your home business, then you only made $45,000.

I would NEVER file a Ch. 13 if you can help it. That's like not even filing bankruptcy at all. If you barely have $200 left, you could easily spend that money on Google Pay-Per-Clicks in ONE SINGLE DAY and then POOF, you have a write off.

Plus all of your other expenses now because a tax deduction such as your home phone, cell phone, parts of your electric and water bill, and other stuff. Stuff that was not normally a tax-write off because you were working only W2 NOW becomes TAX-DEDUCTIBLE since you have a home business.

You can join Amway, Herbalife or any one of the MLM's that people have tried to get you to join. Why throw $5-15k away in a Chapter 13, suffering for 5 years paying that back every month when you could be investing in a home business, have a tax write off and then allow you into a Ch. 7! You'll be home free. BELIEVE ME! THIS WORKS! I'm DOING IT NOW!!

You guys are making this harder than it needs to be. Believe me, filing bankruptcy for me was SO SUPER EASY. I don't know why people are fretting over it all. It's not as bad as you think.

[Calthius]

You can file a Chp. 7 without having to be concerned with how much income is left over

This is not correct. You still need to fill out schedules I and j to determine the DMI that may be available to fund a Chapter 13.

http://www.doanlaw.com/blog/?p=15

You have to remember that the codes are different depending on if the debt is considered primarily Consumer or Primarily business related. If it is primarily business related Schedules I and J are a non concern because of a failed business. Don't take my work for it look at the link and search for a lawyer who knows how to deal with a case that is considered mainly business in nature.

[Tbornetun]

I work in MN. If the debt was primarily encumbered because of business. You can file Chapter 7 regardless of what I and J say.

Good luck.