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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I will be filing a Chapter 7 Bankruptcy in the State of Nevada

Resolved Question:

I will be filing a Chapter 7 Bankruptcy in the State of Nevada . My debts are apportioned the following way. 50% Real Estate losses. 30% Business Credit Card with Personal guarantee and 20% Consumer Credit. My understanding is that because of the way my debt is structured . I do not have to take the means test. Am I correct. Please explain
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 6 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

If more than 50% of the debt is non-consumer debt, the means test does not apply to the debtor

WALLSTREETESQ :

If the real estate losses was for a primary residence and not an investment property or business debt, you would not pass.

WALLSTREETESQ :

If your only consumer debts are the 20% consumer credit and 70% is business you would not have to take the means test.

Customer:

I do not understand the third paragraph. Please restate. My main loss will be from 2 houses. One is my primary and the other is a rental. The rental was my primary about 5 years ago. Does Real Estate losses count as consumer or non consumer debt. Thanks for your help .

WALLSTREETESQ :

The real estate loss if it was an investment property would be considered a business debt.

WALLSTREETESQ :

The loss on the primary would not be considered a business debt.

WALLSTREETESQ :

You would have to show proof that the rental was not a consumer debt, which should be easy to do if you have proof it was rented and you classified it as so, in your previous tax returns.

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