Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.
If more than 50% of the debt is non-consumer debt, the means test does not apply to the debtor
If the real estate losses was for a primary residence and not an investment property or business debt, you would not pass.
If your only consumer debts are the 20% consumer credit and 70% is business you would not have to take the means test.
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 .
The real estate loss if it was an investment property would be considered a business debt.
The loss on the primary would not be considered a business debt.
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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