non consumer debt & chapter 7

[MSbklawyer]

Most physicians require a chapter 11. Their income is too high for 7; their debt limits are too high for 13. That leaves 11. If you aren't trying to save the businesses, you can file chapter 11 and propose a liquidation plan -- which simplifies things a great deal. It's the functional equivalent of a chapter 7, without the debt limits. The means test doesn't apply if your debt is primarily non-consumer debts, so whether you file for 7 or 11 turns primarily on what you're trying to do with the businesses.

Are the businesses corporations or LLCs or sole proprietorships or otherwise organized? Do you have personal liability for the business debt? If there is no personal liability, just walking away from the businesses may be an option.

Now, about that pain I have in my lower back when it gets cold: I'm going to PM you my address and you can mail me a script for the good stuff.

[hoffdaddy]

Help..... I am a physician with several businesses that have soaked us dry. We have put everything we have into them and are broke.I still generate substantial income from being a physician. We have 2.5 million in non consumer debt and 1.5 in consumer debt.We are aware thet the means test doesn't apply. An attorney advised that he didn't think we could file chapter 7 because our income is too high. Our income has dropped approx 50% over last 4 years and the businesses no longer are sustainable. We did a budget and although monthly income is a lot the basic expenses are also high. There is little or no discretionary income.We will re affirm on our home. All consumer debt payments are current but the businesses are about to go into default on lease and loan payments. Attorney said he doesn't think it will pass the smell test with the court.

Can we file 7?
Does income matter?