Can anyone qualify for BK?

[lostindebt]

So today my husband and I were sued by our mortgage lender for our 1st loan. Now I just read online that you can not have over 300k unsecured debt to qualify for 13 - Does that mean I would not qualify for either!!!

So confused , trying to get my facts straight so when I go meet with lawyers next week I understand what I am hearing!

[UpsideDownMI]

In a chapter 13 your total unsecured debt can not exceed $336,900. If your unsecured debt exceeds that you will not qualify for a chapter 13.

There are no debt limits with a chapter 7. If your household income is below the median income in your state based on your family size you will qualify for a chapter 7. If your household income is above the median income, you must be able to pass the means test to qualify.

[mama2three]

Unsecured debt

Unsecured debt is credit cards, medical bills, etc. Houses are not considered unsecured. Your home and cars are generally considered secured.

[lostindebt]

ok, so I am confused -

I have a pending lawsuit for a bad business deal that is obtaining a judgement against me for $400,000 - I am assuming that is unsecure debt.

So if I have over 400k in unsecure, and dont qualify for a 13 - and we make double the income for the means test for a 7 - then what?

I am so freaked out its not even funny.

[keepmine]

The means test is part one. Next, you fill out schedules I and J to determine if you have enough disposable income to fund a Chapter 13.
Here's a good site to plug in some numbers.

http://www.legalconsumer.com/bankruptcy/means-test/index.php

[biotechsolution]

ok, so I am confused -

I have a pending lawsuit for a bad business deal that is obtaining a judgement against me for $400,000 - I am assuming that is unsecure debt.

So if I have over 400k in unsecure, and dont qualify for a 13 - and we make double the income for the means test for a 7 - then what?

I am so freaked out its not even funny.

If the $400,000 is more than 50% of your total debt than the means test doesn't apply for you.
You can just use your schedules to determining your disposable income and you don't have to follow IRS guidelines. You have more wiggle room.

I had $18K in private school tuition and the trustee never questioned it in my schedules.

It's because the UST can't use 707(b) to dismiss or convert your BK since it's not a 'consumer' debt BK.

[lostindebt]

ok so my stats ...

333k 1st mortgage forclosure (lawsuit filed today)
65k HE line (lawsuit forthcoming I am sure ...)
400k lawsuit (business)
30k CC's

150k income.

What does everyone think?

[biotechsolution]

You are in that limbo area.
Income going to be to high for a Chapter 7 and since your business debt isn't more than 50% of your total debt you are subject to mean test and IRS guidelines.
You most likely not qualify for a chapter 7 with income that high, maybe if you have a family of 8 or so and live in a very expensive city but you are still subject to IRS limits.. But you have too much debt for a 13.
Unless you file a very expensive chapter 11 you may not have any options.