Non-Consumer filing, possible test

[HHM]

We may see a possible test of the amount of disposable income a person can have and file a non-consumer chapter 7. In Denver, a local celebrity, Tom Martino, filed a non-consumer chapter 7 (mostly failed real estate developments) and shows $90,000 PER MONTH of DMI on schedule I & J, and just over $75 million in unsecured debt.

Just wondering if there is some amount of DMI that will eventually make the court choke on the non-consumer exception.

http://www.justaskjane.com/2011/09/understanding-tom-martino%E2%80%99s-bankruptcy-non-consumer-chapter-7-bankruptcy/

[despritfreya]

I see your point and I believe there was a case that came up on this forum a few months back where the non-consumer filer was thrown out of bk because he lived a luxurious lifestyle and refused to change his ways. Court used 707(a) "for cause". In the case you discuss, $90k/month would give a 7.2% return over 5 years. Kind of a pittance considering the amount of debt. Will be interesting to see what happens. My guess is nothing. However, I would not be surprised if he faces some 523 matters as fallout from the failed real estate investments.

Des.

[frogger]

This is going to be interesting. Like des however, I don't think anything in the law will change.

[HHM]

This is going to be interesting. Like des however, I don't think anything in the law will change.

I don't think so either, if the court dismisses the case, it will come up with other reasons like a 707(a) argument and not touch the consumer/non-consumer issue.

[maymay]

interesting i think, what are you going to do next?

[frogger]

interesting i think, what are you going to do next?

See you banned for spamming the forum?