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  1. #1

    Default Using Form 22A for Non-Consumer Debt

    My debts are: 260K on mortgages for rental properties plus 15K from credit cards. At top of form 22A it says that form 22A is to be completed by poeple who's debts are PRIMARILY Consumer Debts.

    According to the definition of Consumer Debts in the Code - Mortgage debt would not count as consumer debt. That interpretation has been agreed to by many frequent responders on this board & others in the past.

    My questions:

    1) Is there another form you complete when your debt is not primarily consumer debt?

    2) The form seems like it would actually help me b/c on lines 5b &5c i would enter the rent I collect and the expenses (incl Mort.) on the prop.'s - this would result in $0 disposable income for me at end of form. Any thoughts here?

    3) Based on #2 I feel I should qualify as a Chp 7 (despite fact that I make twice the state median income). However, i can not find a local attorney that agrees with that position. Once I tell them my salary, they say Chp 13 is my only avenue. I HAVE NO OTHER ASSETS (other than 401K) so that's why I prefer CHP 7. Any reason why i should still consider Chp 13 given what I just stated?

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Using Form 22A for Non-Consumer Debt

    Form B 22A is for your means test calculation. There is no other "means test calculation" which involves listing debts irrelevant to the means test. If you are taking a loss on your rental properties, then you would enter the figures to document that loss. If your salary disqualifies you for Chapter 7, c'est la vie. I have no idea what your salary is.

  3. #3

    Default Re: Using Form 22A for Non-Consumer Debt

    I also make above the median for my state, but I'm about to file for chapter 7. When your debts are primarily non-consumer, you are not subject to the means test, but apparently the trustee will look at schedules I and J. I've been told to list as many expenses as possible to lower the disposable income on schedule J to make it less likely for the trustee to push for a chapter 13.

    I went through the same thing where I met with about 8 or 9 atty's and when they heard what my salary was, they instantly said I'd be a chapter 13. They didn't want too much detail as the consultation was free. It took months before I found an atty that even knew what I was talking about when I mentioned the more than 50% non-consumer thing.

    I'm filing this week. Wish me luck and keep meeting with atty's, hopefully one of them will know what you are talking about. I was told to look for an atty. that handles mostly chapter 11's. They deal with business issues and would most likely know what you need.

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