will I be considered non-consumer in CA when I used cc's for business exspenses

[drowningfast]

I've read on this forum that some states consider the cc debt non consumer if you use it once for your business. And some only consider it non consumer if51% of the debt was used for the business. I'm confused.

All of my cc's, lines of credit, and Heloc were used for the business. I am in CA. Am I non consumer?

[keptdigging]

Interestingly, I've never seen anything other than the 51% rule. The rub is that your first mortgage on your personal residence is non-business. In my case my first mortgage is more than 51% of my total debt. Just another great thing about living in high housing cost California.

I think the intent of congress was to still allow small business owners to file Ch 7, but they blew it because of this. Honestly they need us to get back on the horse if we're so inclined and hire and generate those payroll taxes... not be unmotivated and working for The Man in a 5 year Ch 13.

It gets ever worse: with declining housing values a piece of the mortgage(s) is unsecured and we may not qualifty for a Ch 13 either.

But I'm sure they wrote the Health Care reform law much more carefully.