consumer vs business debt timing for means test purposes?
Posted: Sat Nov 24, 2018 10:23 am
Hello List-matesmeans test does not apply if more than 50% of debt is business debt. is there a code section that states at what time do you determine the percentage of debt? (I know we generally assume at time of filing)or to filing. however he incurred a mortgage on a house within 25 days prior to filing of bankruptcy that is more than his business debts.(an emergency ch7 has been filed)
trustee can set aside transfers within 90 days prior to bankruptcy because the debtor is presumed insolvent 547(f). can we argue that the debtor was insolvent prior to the house purchase and the means test application should be determined as of his insolvency?thank youbest regardsRoland Kedikian
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Hello List-matesmeans test does not apply if more than 50% of debt is business debt. is there a code section that states at what time do you determine the percentage of debt? (I know we generally assume at time of filing) I have a client with mostly business debts during the 90 days period prior to filing. however he incurred a mortgage on a house within 25 days prior to filing of bankruptcy that is more than his business debts.(an emergency ch7 has been filed)trustee can set aside transfers within 90 days prior to bankruptcy because the debtor is presumed insolvent 547(f). can we argue that the debtor was insolvent prior to the house purchase and the means test application should be determined as of his insolvency?thank youbest regardsRoland Kedikian
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