My debt is over $250,000 of rental real estate, and $25,000 in credit cards. The BK petition asks if the debt is primarily 'consumer'. Anyone have insight?
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The only insight I can give you is the definition of "consumer debt".
Consumer Debt - Debt that has been incurred primarily for the purchase of consumer goods and therefore on which interest payments are not deductible (unlike mortgage debt). Debt owed by consumers on credit that is not secured by residential real estate; includes revolving and nonrevolving consumer debt.
More or less credit cards of course are consumer debt. I assume since it asked if your debt was primarily consumer it's asking if your debt is in fact mostly consumer debt. You stated you have $25,000 in cc debt and $250,000 in real estate, with the definition of "primarily consumer debt" I would say that most of your debt is secured, and therefore not primarily consumer debt.
Someone else may chime in here and correct me, because I could be off base but that is how I read it."Try to save money. Someday it may be valuable again." - Anonymous -
The bankruptcy code defines it...
debt incurred by an individual primarily for a personal, family, or household purpose, (Section 101(8) of the BK code)
But, I doubt that is much help.
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As opposed to leveraging you house to fund a business venture. Taking signature loans for the same. That would not be primarily "consumer debt".Originally posted by HHM View PostThe bankruptcy code defines it...
debt incurred by an individual primarily for a personal, family, or household purpose, (Section 101(8) of the BK code)
But, I doubt that is much help.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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At issue is the median income, and means test.
If the debt is not primrily 'consumer', those ideas do not pertain. Thanks sinkingfast and bktango for our unput. A lawyer old me she'd argue that my debt is NOT primarily consumer'. Anyone else have rentsl property, etc?Comment
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You started the thread asking about types of debt. Now you've shifted gears and are talking about types of Income and the Means Test.
What are you trying to learn??
Maybe if you ask your questions clearly, you can get the answers you are looking for.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Not asking about types of debt-
only trying to determine if my debt ($250,000 of rental property and $25,000 of CC) is primarily 'consumer'- if not the median does not pertain to me, and I can get a job without fearing going over the median, in the event I end up having to file BK in the future.Comment
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I think it is consumer, its just secured instead of unsecured. It was an investment, not a business.Comment
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