Means Test Question

[Dollar Bill]

I took a look at the US Trustee Handout that Southernbelle so graciously posted.

Does anyone know if rental property is considered consumer debt for the means test? I noticed on the handout it mentioned that the primary residence definitely is, but is rental property?

I have high business debt that I thought would save me from the means test, but was told I needed to consider the property I have.

Does anyone know about this?

[Dollar Bill]

anyone

[I want out]

Does the property cash flow, or are you losing money on it every month?

[Dollar Bill]

Does the property cash flow, or are you losing money on it every month?

Cash Flow...No problems

[HHM]

Rental properties are not consumer debt.

[Knew_it_all]

Does anyone know if rental property is considered consumer debt for the means test?

Why? What difference does it make? You can put business debt and consumer debt on the means test..Debt is debt...

[biotechsolution]

if your business debt is more than 50% of your total debt. both unsecured and secured debt(non-rental mortages and cars) combined. then you can by-pass the means test for income requirements. You do not have to fill out either 22 forms. You just have to make sure you schedules I and J and up to 0.
You are also not subjected to just the expenses the IRS thinks you should have. Big advantage.

[Dollar Bill]

HHM, BIOTECHSOLUTION and all others thank you.

The two of you make me want to find another attorney. My atty is close to retirement (70+) he should know this.

Thanks again.

[Dollar Bill]

Rental properties are not consumer debt.

Not consumer debt despite them being single family residences? Rental property is rental property right?

[HHM]

Rental properties that you own for investment purposes are not consumer debt. They are sources of income and therefore a business.

[Dollar Bill]

Thanks again.