NonConsumer Chapter 7 and Reaffirming Debt Requirement?

[moneygirl88]

First let me say how great it is to have this forum out here!! You guys are wealth of information!

Ok so here's my Main Question (short version):
Do you have a to reaffirm debts to qualify for a NonConsumer Debt Chapter 7?

Long Version (some background):
I am currently working with a attorney to file for NonConsumer Debt / Non Assest Chapter 7. Essentially I have two upside down rental/investment properties and I currently rent, own one car and have bout $12K in CC debt, so I'm way over the 51%. That is not my concern.

Upon talking with my attorney, they told me that I'd need to reaffirm the debts on my rentals because in a non-consumer bankruptcy if you were getting rid of the investments you wouldn’t be able to claim it as a non-consumer debt.

Is that true? Isn't that a contradiction to what Chapter 7 (liquidiation) is? ANY NON-CONSUMER CHAPTER 7 Filers out ther can give some insight?

[justbroke]

No, you don't have to reaffirm. Non-consumer cases are relatively harder for the United States Trustee (UST) to dismiss for abuse, because those parts of the Bankruptcy Code (found in 11 USC 707(b)) do not apply to non-consumer cases!

Generally, you can even show pretty significant disposable income (over $182.50) and still qualify. However, you may receive more scrutiny. I was successfully discharged in my case on a non-consumer case.

I would talk to some more attorneys that actually do non-consumer cases. I surrendered one of the properties outright, and the other property I intended to reaffirm, but the Bank told me I didn't need to reaffirm the debt in order to get the modification that I requested. I now have about $8K in debt, and that's it.

[myid4u2c]

I fully agree with Justbroke, DO NOT REAFFIRM ANYTHING.