high income and too much unsecured debt for 13

[acro68]

If you have a 100K income (spouse and 1 child) and 500K of unsecured debt, must they approve your Chapter 7 if you pass the means test and the schedules are deficient spending...? Can they simply reject you, being that you are above the norm.

[ccsjoe]

Being above the median does not mean you are automatically disqualified for a 7. However, you can expect increased scrutiny and I would arm myself with a very good attorney, one who will fight for you when needed. You're in IL, household of 2 and income of 100K (per your statement above). The UST is going to seriously tear your expenses apart and attempt to challenge you. Can be done, especially if your expenses are watertight and totality of circumstances applies. But there's where a good attorney earns his or her keep.

[daytona]

Acro- is any of the unsecured business debt? If more than 1/2 of total debt is business you can qualify for a Ch7. Otherwise, they will look hard at expenses to see if they can kick you out of CH7...your ONLY option then is a consumer Ch11 because of the unsecured limits in Ch13.

[tcreegan]

Hi acro,

It will come down to your expenses, for a look at what the IRS considers standard go here:

http://www.justice.gov/ust/eo/bapcpa/20101101/meanstesting.htm

Ill, family of 3, median income = $68,782 $100,000 - $68,782 = $31,218 of expenses

Like cssjoe said, you need a good attorney who will fight for you

Tom in Colo

[DebtEnder]

Acro- is any of the unsecured business debt? If more than 1/2 of total debt is business you can qualify for a Ch7. Otherwise, they will look hard at expenses to see if they can kick you out of CH7...your ONLY option then is a consumer Ch11 because of the unsecured limits in Ch13.

This, if you funded a business venture and this accounts for over half the debt you can do a non-consumer chapter 7 without the median or means test issue.

[acro68]

Thanks for the advice on the non-consumer chapter 7. Our house rent, two car loans, and ongoing medical & dentist bills puts well over the $31,218 of expenses.