Chapter 7 Business Debtor

[BROKENN]

[myid4u2c]

This post is great information. I filed a non-consumer C7 BK and received a discharge. I had a lawyer that specialized in cases like mine, he had three clients with their 341 hearing scheduled at the same time as mine, all were rubber stamped.

The key thing to remember is you still can not have disposable income to contribute to paying your creditors, however there is not the same scrutiny and established limits on your budget items.

[Tom_Mi]

Do you count mortgage debts? Yes, most courts count mortgage debts in the determining whether the means test has to be passed. Many debtors with business debt fail the “primarily non-consumer debt” test because of their home mortgages.

I almost screwed myself on this one. If I do a short sale on my rentals, the deficiency is LESS than my home mortgage --- hello CH13.

I had to file BEFORE foreclosure/short sales, to include the total mortgage amounts.

By the way, I think home mortgage as consumer debt is a gimmick to minimize business filings, while allowing legislators to deceptively claim they support business filings. Welcome to the Republican States of America.

The key thing to remember is you still can not have disposable income to contribute to paying your creditors, however there is not the same scrutiny and established limits on your budget items.

I'm filling out the Schedule J now and sweating bullets. I'm being honest on the form, but I hope you're right about the scrutiny. If they disallow much I'll show a surplus.

[BROKENN]

I'm filling out the Schedule J now and sweating bullets. I'm being honest on the form, but I hope you're right about the scrutiny. If they disallow much I'll show a surplus.

Add everything you will be paying for! Medical, insurance, utilities, rent/mortgage, repairs, school, etc... my budget was a little higher in expenses than the allowable, but true and my atty said no problem. I used this site for help on what the allowable expenses are (it is at the end of the tests): http://www.legalconsumer.com/bankruptcy/means-test/

The gasoline was laughable, I put in the real expense.

[Tom_Mi]

Add everything you will be paying for! Medical, insurance, utilities, rent/mortgage, repairs, school, etc... my budget was a little higher in expenses than the allowable, but true and my atty said no problem. I used this site for help on what the allowable expenses are (it is at the end of the tests): http://www.legalconsumer.com/bankruptcy/means-test/

The gasoline was laughable, I put in the real expense.

This is similar to another post I made this morning... but if my 2 cars (old rusty) are paid for, can I still claim some of the allowance 2 x 489 as budget to save for the next car?