Would I qualify for non-consumer debt Chapter 7?

[HHM]

Yes, one option is to unload the house and rent. if you can do that, you may be able to qualify for non-con-7, however, if there is a deficiency (i.e. house is worth less than is owed), you need to factor that amount in as consumer debt and see if you would still qualify. As debee points out, time to get a "realistic" idea of how much your home is worth.

[Lalalink]

We owe $250,000 on a home that is worth $320,000.00. I guess that would push us over into having primarily consumer debt. However, we could probably sell the home pretty fast. We owe the IRS around $30,000.00.

First thing you need to do (and a lawyer would need this info from you too) is find out the true market value of your home. If your home is really only worth $280,000 or less then you may be able to do a Ch. 7 (or worst case, Ch. 13) without losing your home to the Trustee. (The math: you owe $250,000, Illinois allows $15,000 (double if spouse filing too) homestead exemption; so $250,000 + $15,000 + $15,000 = $280,000. )

Take deep breaths and one step at a time.

Do NOT file now and just let the chips fall. Emblazen the terms "Bankruptcy Planning" into your brain. Sadly, we did not find any competent attorney in our area who could/would help us "plan" our BK. This forum has been a godsend.

I'm not a lawyer, just sharing how I would approach this...

Lala

[Lalalink]

I've been working 16-hour days 6-7 days a week and I push myself to stay awake to get work completed so we don't lose our home or the one vehicle we have left.

Suppose you were able to get rid of all of your credit card debt, would you still be able to afford your home and one vehicle? If not, then I would be looking for a good rental for your family and try to sell the house.

Many hugs to you, I also have a child on the autism spectrum. The stress is unbelievable; we try our best to shield it from him and our others, but somehow they know. Our small business completely failed. We have been doing our BK planning for many months now. Hoping to finally file this week or next.

FWIW, we unloaded our home 3 years ago and spent the proceeds on the business. Luckily, we did not buy another home. We have been renting and loving the freedom of it. We just signed a two-year lease so that we can file BK soon without having to worry if we will "qualify".

Repeat, I am not a lawyer... just posting about what I would do.

Lala

[GoneBust]

Thank you all. This is a very warm place.