In a 'primarily consumer debt' Chapter 7 Bankruptcy, the Bankruptcy can be dismissed (or converted to a Chapter 13 with the consent of the Bankruptcy filer) if the Bankruptcy filer does not 'pass' the Means Test.
This is provided for in Bankruptcy Code section 707(b)(1):
if it finds that the granting of relief would be an abuse of the provisions of this chapter.
Section 707(b)(2) explains what amounts to the presumption of abuse (basically not 'passing' the Means Test):
The issue in such a Bankruptcy is whether or not the debtor's debts are indeed primarily non-consumer debts.
So based on Section 707(b)(2) - are you saying that to qualify as a "business" Chapter 7, you still have to essentially pass the "means test?" If so, doesn't that defeat the whole purpose of creating a separate category for filing as a "business."
Once determined that the debts are primarily non-consumer debts, a case cannot be dismissed because of abuse - because the Means Test cannot be 'passed
My "consumer-debt" is primarily my first and second mortgages. I don't have any active credit cards, and the only unsecured "other" debts are a business line of credit collection from 1999 which is now at $46K, a judgment for $12.5K for a credit card, and an auto repossession collection of $4.5K. But the other $700K+ of "consumer" debt is the first and second mortgage on my former primary residence. In your view, would this type of debt be considered "abusive" according to your interpretation of the code?
You would not be able to deduct a rental expense for your wife and daughter to live in Florida.
If it were determined that your debts are primarily non-consumer debts, you would be able to convert your case to a
But given the information you provided, it seems clear that your debts are primarily non-consumer debts (primarily = more than 50%).
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