Expert: Mark J. Markus- California Bankruptcy Attorney - 5/21/2009

Question
How much of my debt must be business related to qualify me as a "primarily" nonconsumer debt debtor?  We have substantial consumer debt, too, and our family necessities are greater than our income, although our income is nearly 10K more than the median on the means test.  That does not include paying any other debt but family operating expenses.  If the judge says we are a nonconsumer debt debtor, will he let us do a 7 on all of it?

Answer
In order to be primarily nonconsumer, more than 50% of your total debt must be nonconsumer.

That will allow you to avoid the means test, but does not avoid an analysis of your budget on Schedules "I" and "J" and if you have sufficient income to repay a high enough percentage of your unsecured debt, there can still be an objection raised to you being in a Chapter 7 case.