Interested in working with us? Call us on (636) 916-5400 or fill out this quick form and we will contact you within 24 hours!
Are income tax liabilities consumer debt?
In a Chapter 7 or Chapter 13 bankruptcy the means test is not required it more than 50% of the debt is non-consumer debt. Usually this is not the case because a mortgage is considered consumer debt so even if someone has substantial non-consumer debt, their mortgage loan outweighs their non-consumer debt amounts. However, this is not always the case.
If a client comes in and has a $100,000 home loan and another $20,000 in consumer debt and then also has $75,000 in taxes debt and $75,000 in business debt, then this client would likely not be bound by the means test given that more than 50% of his debt his non-consumer debt. While it is split in courts whether tax debt is considered consumer or non-consumer, the majority of courts hold that it is in fact non-consumer debt.
St. Charles Office
1861 Sherman Drive
St Charles, MO 63303
Phone: 636-916-5400
At Hwy 94 and Hwy 70.
Get Directions | See Detail
St. Louis Office
3470 Hampton Ave, Suite 101
St. Louis, MO 63109
Phone: 314-353-0834
Close to the corner of Hampton Ave and Chippewa. By appointment only.
Get Directions | See Detail
South & Jefferson County office
7321 S. Lindbergh Ave., Suite 222
St. Louis, MO 63125
Phone: 636-916-5400
Across the South County Mall.
Get Directions | See Detail
Florissant Office (North County)
1281 Graham Rd, Suite 300
Florissant, MO 63031
Phone: 314-921-1880
At North Hanley and Hwy 270.
Get Directions | See Detail
Belleville Office (St. Clair county)
2 Park Place Professional Centre
Belleville, Illinois 62226
Phone: 618-977-9560
On Hwy 159, next to Schnucks.
Get Directions
Granite City Office (Madison County)
3600 Nameoki Rd, Suite 201
Granite City, IL 62040
Phone: 618-977-9560
Across Shop'n Save, by appointment only.
Get Directions | See Detail
Traffic
Bankruptcy
Family Law
Car Accidents
