Legal Question in Bankruptcy in California
Bankruptcy
I have read in several places that if my debt is primarily non-consumer debt, that the means test does not apply to my case, but i'm unsure of how reliable the sources are. Since I'm filing pro se, it is very important that I find out for sure! I owe about 16k in consumer debt, and about 70k in back taxes ( 2000-2005 ),, and I'm wondering if I can discharge the tax debt, and if the means test applies to me. Thanks in advance for your help!
2 Answers from Attorneys
Re: Bankruptcy
It is true that if your debt is primarily business debt, you do not have to pass the means test to qualify for Chapter 7. Unfortunately, personal income taxes (and home mortgages) are classified as consumer debt. Since you didn't mention any other debt, I'm assuming you were hoping that the taxes would be considered non-consumer debt.
As for discharging them in a Chapter 7, your '05 taxes would not be dischargeable, your '04 taxes might be (if you filed the return by 4/15/05), and the rest should be dischargeable as long as the returns were not filed late. (A general rule is that tax returns need to have been filed at least three years ago for those taxes to be discharged.) Other ramifications are beyond the scope of this response.
Re: Bankruptcy
assumption correct. Need a liitle more analysis.
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