When filing a CH 7 as a business case - no means test - do I need to include a
Posted: Tue May 03, 2011 5:42 pm
What if the home is in foreclosure and foreclosure date is set for June 7, 2011?
I have a client who is:
49% nonconsumer debt (failed business, verifiable from meticulous accounting, taxes, P&L, receipts, leases, LLC, etc.) Son and Dad poured a massive amount of money into a new venture that failed almost immediately.
51% consumer debt - Mortgage is $188,000
There house was set to foreclose today, but has been moved to June 7. Without the house, the scale quickly and drastically tips to nonconsumer.
Could I file "nonconsumer" primarily business debt BEFORE the house actually forecloses? Or is that shady? Or perhaps I need to figure out Deed In Lieu of Foreclosure and call bank? Something I've never done.
They stopped making payments in December and have already moved and absolutely are not trying to save their house.
Thank you!
Sandra Nutt
(818) 988-8878
SandraNutt1234@gmail.com
>
> Home is a consumer debt in 9th Cir. Nonconsumer debts, including taxes, must be over 50%, or it's a consumer case.
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> D
> Sent from my iPhone
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> On Jan 24, 2011, at 7:36 PM, Kenneth Jay Schwartz wrote:
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> I do not agree with your last sentence. Since the home mortgage amount exceeds the non-consumer debts, the test applies
>
> Kenneth Jay Schwartz, Esq.
> LAW OFFICE OF KENNETH JAY SCHWARTZ
> 21031 Ventura Boulevard, Suite 640
> Woodland Hills, California 91364-2203
> Telephone: (818) 226-1205
> Facsimile: (818) 226-1213
>
>
>
>
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> To: cdcbaa@yahoogroups.com
> Sent: Mon, January 24, 2011 7:27:12 PM
> Subject: Re: [cdcbaa] When filing a CH 7 as a business case - no means test - do I need to include a
>
>
> I think it is numerical and there is no place in the schedules for an explanation: do the amount of the business debts exceed the personal, family or household debts? I think it works to only calculate the unsecured debt, but I don't have any authority for that, i.e., I think that even if the unpaid unsecured guaranty of a business liability is less than the home mortgage, but is more than the other unsecured debts, it is a business case.
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> Jason
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> On Jan 24, 2011, at 6:49 PM, shawnswhite wrote:
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> declaration or explanation as to why it is a business case - or just wait for the Trustee to ask?
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> Thanks,
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> Shawn
>
The post was migrated from Yahoo.