Should I file and Non-consumer BK 7 questions

[StrawberrySu]

I have made my decision .. sort of. Have meetings scheduled with two attorneys offices next week, both specialize in BK in my town of about 50,000 people. Will explore all my options, but am wondering...

What would the long term consequences be of not filing, since I am moving to NC, a debtor friendly state? If they can't garnishee wages and can't force us to sell a cheap house we would buy, as I have read, other than credit score, am I missing something? Or wrong about something?

Lastly, in a Non-consumer BK7, if we qualify for that, I know the means test doesn't count. But in reality, does that mean it doesn't matter how much we make, we get a discharge? What about assets, mainly, the cash saved from not paying bills? Do they get to take that? Not sure if the rules are different for a Non-consumer, is everything the same except for not having to pass the means test?

[biotechsolution]

your income basically won't matter in a non-consumer 7 but your assets will and the trustee will take what he can.

[StrawberrySu]

your income basically won't matter in a non-consumer 7 but your assets will and the trustee will take what he can.

I am sure you are right about that last part! One concern I have about qualifying for non-consumer is that my second property was our former home, and I have read that can be a problem. I also read the "intent" of the mortgage was the crux of the matter. We re-financed a month prior to leasing, it was up for sale, then lease for several months before that. The point of the re-fi was to reduce the payment $200, so we could find a renter. Maybe this will solve the "intent" question.

[tcreegan]

Hi StrawberrySu!

You are on top of this! I have read several places that the intent or purpose of the debt is what matters. Say you refinance your primary residence but use the money to buy a rental property. The purpose/intent of the refinance was to purchase a rental, so it is business debt despite being secured by your non-business home.

As always....your mileage may vary, consult your local competent BK attorney to make sure it flys in your local court!

Tom in Colo

[HHM]

In a non-consumer case, income is not a factor, AT ALL. You can show $4,000 per month in disposable income on Schedule I and J, and barring fraud, there is nothing the U.S. Trustee can do about it.

However, assets are assets. No difference between consumer vs non-consumer cases in that respect. If you have cash on hand with no way to exempt, that cash is at risk, as are any other non-exempt assets. It is common that non-consumer cases end up being asset cases (but when there is a failed business or formerly high income earners, they usually have STUFF that goes beyond what can be protected in BK).

[StrawberrySu]

Hi StrawberrySu!

You are on top of this! I have read several places that the intent or purpose of the debt is what matters. Say you refinance your primary residence but use the money to buy a rental property. The purpose/intent of the refinance was to purchase a rental, so it is business debt despite being secured by your non-business home.

As always....your mileage may vary, consult your local competent BK attorney to make sure it flys in your local court!

Tom in Colo

Tom, I don't know if I am on top of this or it's on top of me/sigh. See my post re my first atty meeting today, "the Saga of StrawberrySu", lol