Do I qualify for business BK chapter 7 ?

[FreshStart2009]

I do have a rental property that is way upside down.

1st mtg on rental property: 200K
2nd mtg on rental property: 50K
Market value of rental property: 130K

In addition, I do have around 100K in credit card debt plus my primary residence (total 1st and 2nd mtg = 330K)

Do I qualify to file for business bk? I read somewhere that owning a renatal property is considered a business both by IRS and US Bk Court??

Is it true that there is no means test when one files for business BK?

Awaiting your replies . . .

THANKS!
FreshStart2009

[FreshStart2009]

bump
Is this a stupid question that doesn't deserve a reply???

[TEW]

Well it's hard to say you didn't give much info here.
whats your income. things like that.

[FreshStart2009]

household income is about ~90K. Household size 4. Income is above median.

[lrprn]

If more than half of your debt is business-related, then you do not have to take the Means Test.

However, given the complexity of what you describe and that your income is above the median, you need the advice of an experienced bk lawyer in your area who also understands the business side to sort out which chapter you can file and which is in you and your family's best interests in the long run.

Start by setting up 3-4 free initial consultations with bk lawyers that fit your needs in your area. You'll learn a great deal about what's going to be possible in your situation.

[FreshStart2009]

Thanks for the reply!

[biotechsolution]

Unless your credit charges are all business charges you won't qualify for a business bankruptcy with the above info.

You have to add up all your debt and more than 50% of it has to be business related. Mortgages, car loans, etc.

Your rental mortgage amounts aren't big enough.

[FreshStart2009]

Thanks biotech, lrprn and TEW for your replies.

My assumption for business BK was that one needs to have an LLC or corporation but I was wrong.