Chapter 7 Asset Case Help

[jonance]

Hello,

I have been reading the posts on here obsessively for the past few weeks as Bankruptcy has clearly become my best option to get out of the situation I am in. I have absolutely no personal (consumer) debt except for the mortgage on my wife and I's house. My other debts are all non-consumer from investment properties owned with 2 partners. The notes and guarantees are all on me. The business debt from mortgages and line of credit is about 600k. None of us want to keep any of the investment properties so starting next month we will let them all go into default.

I have seen 2 attorneys and they both assured me that i would qualify as a Chapter 7 due to the heavy load of non-consumer debt and I am exempt from the means test. This would be an individual bankruptcy (my wife isn't involved in any of the properties) I make about 42k per year and my wife is a teacher and makes about 38k per year. We also have assets that wouldn't be totally exempt such as the house (close) and her car titled in both of our names. So my two major questions are:

1. My family has pledged to loan me any money needed to protect and "buy back" the non-exempt equity and/or property from the trustee. At what point do these negotiations happen? It only makes sense that a trustee would much rather have a lump sum payment right away, then to bother with collecting and selling a car or a house....but when does this happen and when are those things "mine" again?

2. Has anyone else filed CHapter 7 non-consumer bankruptcy with assets to buy back and a steady income? Did you have any issue at all or is it pretty painless? Is there ever a chance they would try to make it a chapter 13 even though I'm exempt from the means test? From what i've read they wouldn't, but i would love a personal experience.

I don't mind paying the money to keep the stuff my wife and I have worked hard to get. A bit of insight into the process would help. I'm not sure why some websites say the trustee "may" allow you to buy back equity and property...when all attorneys i've spoken with have said it is clear they would far rather take a lump sum payment for any non-exempt items. I guess they are just trying to scare you. Anyhow any input would be appreciated.

[signal]

Your mortgage on your primary house is still consumer debt. Is the "business" debt you have greater than the consumer debt you have (remember you have to add your mortgage as that is in fact consumer debt). If so, then from what I understand you do not have to take the means tests, as you are a business debtor (>50% of debt is business).

I have alot of business debt. My business unsecured debt is more than my consumer unsecured debt. I thought I could fastpass a ch7. But I owe 360k on my primary mortgage, so that tips the scales to the consumer side, and I must pass the means test.

Just remember, you must add up ALL consumer debt, credit cards, cars, homes, anything. All of your liabilities that are consumer.

[jonance]

Yes, I am primarily business debt by a landslide.

Primary Residence Mortage Balance: $180k
No other Consumer Debt at all

Investment Property Mortgage Balances: $550k
Business LIne of Credit: $40k

So there is no question of my non-consumer to consumer debt ratio. My intention of filing bankruptcy is that I removed myself from the LLC for the investment properties and the others were supposed to refiniance to get out of my name. They were never able to....Now they aren't rented, and are just hanging over me. Thus, for my mental health and to start over I want to file Chapter 7 Non-Consumer, Surrender ALL of the investment properties, keep my primary residence, autos, everything....and use loans from family members, and funds from my wife to pay the trustee what he needs to sell any equity or property back to me.