MD business related debt

[screwedMHIC]

I had my consultation and the stty I talked to believes there is no criteria related to business debt for a ch7 only income criteria. He didn't know on the spot and had to look it up, I'm curious as to whether he actually did the leg work or copped out and just said no.

I got some responses stating about business debt as a ratio to consumer debt and that being a criteria to file ch7 regardless of income. If any of you out there know anything about this and can point me in the right direction I would greatly appreciate it.

Thanks!

[HHM]

1. The business debt has to clearly identifiable as "non-consumer" debt...meaning, the debt needs to be on credit cards "in the business name", mortgages on investment property, etc. Using personal credit cards for misc business expenses usually does not cut it.

2. When calculating ALL your debt (i.e. including the mortgage on your personal residence, cars, credit cards, etc), your business debt must be more than 50% of your total debt.

If you can satisfy those conditions, you can by-pass the presumption of abuse (i.e. means test) created if your income exceeds your state's median income for a family of your size. BUT....if your income still exceeds your "reasonable" living expenses (i.e. schedules I and J of the BK petition), you can still be placed in a chapter 13 regardless of the ratio of your business/consumer debt.

[biotechsolution]

just remember you 'reasonable' living expenses when you're filing for primarily a business bk are completely different from you consumer means test calcuations.

You can include just about anything. The only way a case can be dismissed under 707(b) still only covers 'consumer' cases.

There was just a recent case about this. A high income case where it was business debt. A Circuit Appeals court ruled that the trustee still couldn't dismiss using 707(a) and trying to tie it to the ability to repay.

I can post the link to the case.

http://jbublick.blogspot.com/2007/09...ration-of.html

[FreshLikeADaisy]

Screwed, I know nothing about business debt, but it does look like you need a qualified bk atty. As gifted as this attorney may be in other things, maybe even consumer bankruptcies, I'm with you: an answer like that wouldn't cut it with me either. Get a few more consults with various attorneys and see if you can do better, the consults are usually free. Good luck!!!

[screwedMHIC]

just remember you 'reasonable' living expenses when you're filing for primarily a business bk are completely different from you consumer means test calcuations.

You can include just about anything. The only way a case can be dismissed under 707(b) still only covers 'consumer' cases.

There was just a recent case about this. A high income case where it was business debt. A Circuit Appeals court ruled that the trustee still couldn't dismiss using 707(a) and trying to tie it to the ability to repay.

I can post the link to the case.

http://jbublick.blogspot.com/2007/09...ration-of.html

Thanks folks, this is a great resource. I'm going to get started paying off or covering any joint accounts I have with my wife so that her credit will not be affected if I decide to move forward.

Actually the link did not work, can you repost or give me some information so I can find it again?

[screwedMHIC]

looking for a little help in finding a live link to this, can anyone help me out?

[biotechsolution]

http://jbublick.blogspot.com/2007/09/707b-does-not-prohibit-consideration-of.html