Means test no required

[jimbo367]

Chapter 7

A lawyer told me if the debt is primarily business related and not consumer we don't need to do the means test.

I asked another lawyer and he wasn't familiar with it?

Any info on this?

[despritfreya]

Hire the first lawyer. The second has no clue.

If your debts are primarily non-consumer ("business") then you are not subject to means testing. Primarily means more than 50%. You must include ALL debt, secured and unsecured. If more than 50% of the total debt was not run up for personal, household or family reasons you are a "non-consumer" filer and, per 11 USC 707(b)(1), are not subject to means testing.

Des.

[jimbo367]

thanks for the section of the code, now other than not laying the test are there any advantages or ways to utilized that benefit?

[justbroke]

thanks for the section of the code, now other than not laying the test are there any advantages or ways to utilized that benefit?

It's not a "benefit", it's just that you don't complete (or submit) a means test. If you are non-consumer, then you just check the appropriate boxes as a non-consumer filer. The non-consumer filer is not subjected tot he Means Test so it should be easier to fend off any issues with the Trustee.

Hire the first lawyer. The second has no clue.

Awesome!

[jst4f]

Not only is there no means test but the assumption of abuse does not apply. Check out a couple more attorneys and reject any that have not done non-consumer BKs. Best of luck.