As stated in previous questions, I have a NY bankruptcy attorney who is concerned that even though my business debt substantially exceeds our consumer debt, ($744K consumer - including mortgages on primary residence -vs. $823K - investment property debt) my high income might be a Chapter 7
"deal killer." However, when I spoke with a good friend who is a FL bankruptcy court trustee
, he seemed to think that once we submitted the petition
as a "business debt" our income would be "irrelevant." He then referred me to a trusted attorney friend in Florida who, surprisingly, voiced the same income concerns as our New York attorney(?)
So my specific question is: Is this matter of income beyond the means test
and beyond the business debt test all simply a matter of the Judge's discretion? Or is there some Federal statute that govern who qualifies for a Chapter 7 business bankruptcy
based on income?
If it helps: Our net income as stated on Schedule J
is $5,825. This total does not include a monthly IRS
tax installment payment of $500, my daughter's private school tuition of $980, and my son's car lease payment of $249. I also have to make 12 installment payments of $3,611.00 per month to pay the balance of my son's annual college tuition after financial aid!
The last part of my question is although I work and live in NY, our family still has a formal footprint in FL since both our children are in FL (my daughter is in her last year of high school) and we are back and forth regularly. In fact, my wife still has her FL driver license and spends several months a year there. Could we legitimately include the cost of renting property for my wife and daughter to live in as part of our monthly expenses when we submit the petition if net income is in fact a real issue? Alternatively, if we could negotiate a loan recast with the first mortgage holder, we were thinking about keeping our residence and resume paying the modified mortgage.