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Non-Consumer filing, possible test

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    Non-Consumer filing, possible test

    We may see a possible test of the amount of disposable income a person can have and file a non-consumer chapter 7. In Denver, a local celebrity, Tom Martino, filed a non-consumer chapter 7 (mostly failed real estate developments) and shows $90,000 PER MONTH of DMI on schedule I & J, and just over $75 million in unsecured debt.

    Just wondering if there is some amount of DMI that will eventually make the court choke on the non-consumer exception.


    #2
    I see your point and I believe there was a case that came up on this forum a few months back where the non-consumer filer was thrown out of bk because he lived a luxurious lifestyle and refused to change his ways. Court used 707(a) "for cause". In the case you discuss, $90k/month would give a 7.2% return over 5 years. Kind of a pittance considering the amount of debt. Will be interesting to see what happens. My guess is nothing. However, I would not be surprised if he faces some 523 matters as fallout from the failed real estate investments.

    Des.

    Comment


      #3
      This is going to be interesting. Like des however, I don't think anything in the law will change.
      All information contained in this post is for informational and amusement purposes only.
      Bankruptcy is a process, not an event.......

      Comment


        #4
        Originally posted by frogger View Post
        This is going to be interesting. Like des however, I don't think anything in the law will change.
        I don't think so either, if the court dismisses the case, it will come up with other reasons like a 707(a) argument and not touch the consumer/non-consumer issue.

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          #5
          interesting i think, what are you going to do next?

          Comment


            #6
            Originally posted by maymay View Post
            interesting i think, what are you going to do next?
            See you banned for spamming the forum?
            All information contained in this post is for informational and amusement purposes only.
            Bankruptcy is a process, not an event.......

            Comment

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