If your debt is not “primarily consumer debt”, you don’t have to pass the means test to file bankruptcy.
So, you need to total up the consumer debt you have and compare it to the rest of your debts.
Don’t miss the fact that tort claims aren’t “consumer debts” under the means test.
So if tort judgments or even unliquidated tort claims total more than your consumer debt, you don’t have to take the means test.
Check the box, and come on in and file the bankruptcy chapter of your choice.
Let’s start by defining a “tort”. A tort is a civil wrong, other than a breach of contract, that causes injury or damage to another without excuse.
Automobile accidents make up the largest group of torts. The law requires everyone to conduct themselves so that others are not hurt. One who negliently fails to use appropriate care such that someone else is hurt has committed a tort.
Whereas people choose to enter into contracts, and the contract can specify the remedy if one breaches the contract, tort liability is imposed by law.
It is that imposition of liability that courts have looked to in finding that tort damages are not consumer debts for the purposes of bankruptcy law.