Spouse not filing, but BK attorney won't take case because of spouse's income...help?

[sbasurvivor]

I met with a BK attorney yesterday, and he didn't want to take my case. Should I see someone else?

Situation: My small business tanked in 2008, leaving me with $900K in SBA PG. I was only guarantor - wife did not sign. So I'd like to file personal Ch 7, but leave the wife off it.

My wife has several small LLC businesses that she's started in 2009 and 2010. She realizes ~$200K/yr income from them on her Sch C. I show NO INCOME at all, but I do "help out" at these companies.

BK attorney thought the Trustee would try to pierce the LLC and make me an effective "partner", which would push me above the means test.

Anyone ever dealt with this situation?

[DebtEnder]

Does this 900k in business loans total more then half your total debt, secured or otherwise? If yes then you are a non-consumer chapter 7 BK filer. Means test is not required. Not the US TT may try to say wife's debt is your debts and get you nder that median, but if her debt, if any, is also all non-consumer I don't see any REAL need to worry.

Now if you have a million+ home loan pushing you under 50% non-consumer then you can have an issue. If that is the case then income of the household does matter. Hopefully this is not the case.

[sbasurvivor]

Does this 900k in business loans total more then half your total debt, secured or otherwise? If yes then you are a non-consumer chapter 7 BK filer. Means test is not required. Not the US TT may try to say wife's debt is your debts and get you nder that median, but if her debt, if any, is also all non-consumer I don't see any REAL need to worry.

Now if you have a million+ home loan pushing you under 50% non-consumer then you can have an issue. If that is the case then income of the household does matter. Hopefully this is not the case.

Thanks, DE...you are correct. This debt represents > 50% of my/our overall debt, including the spouse. So we should qualify for a non-consumer BK. Thanks.

[LadyInTheRed]

You should definitely consult with another attorney or two..... or three with experience in non-consumer bankruptcies. It sounds like the attorney you consulted with thought your case was over his head in which case he did the right thing to not take the case.