[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.fight13.com\/consumer-vs-non-consumer-debt#BlogPosting","mainEntityOfPage":"https:\/\/www.fight13.com\/consumer-vs-non-consumer-debt","headline":"Consumer vs. Non-Consumer Debt","name":"Consumer vs. Non-Consumer Debt","description":"Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state\u2019s Bar Association to get the information of a lawyer that can assist you in...","datePublished":"2023-03-07","dateModified":"2025-09-19","author":{"@type":"Person","@id":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel#Person","name":"Matis Abarbanel","url":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel","identifier":55,"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Loan Lawyers, LLC","logo":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2023\/03\/what-is-consumer-debt.jpg","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2023\/03\/what-is-consumer-debt.jpg","height":600,"width":600},"url":"https:\/\/www.fight13.com\/consumer-vs-non-consumer-debt","about":["Bankruptcy"],"wordCount":684,"articleBody":"Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state\u2019s Bar Association to get the information of a lawyer that can assist you in your home state. Thank you.Debts can be classified as either consumer or non-consumer, which can have an important impact on which bankruptcy chapters are available to you. But what differentiates the two, and what does it mean for you?What Is Consumer Debt?Debt incurred for personal or household purposes is considered\u00a0consumer debt. Consumer debt includes forms of borrowing used to buy goods or services for personal use.Consumer debt is often unsecured, meaning it’s not backed by collateral. This makes it easier for consumers to obtain credit. But it also means that the lender has fewer options for collecting the debt if the borrower defaults.What Is Non-Consumer Debt?On the other hand, debt incurred for business or investment purposes is non-consumerable. This can include loans or lines of credit used to finance a business, purchase commercial real estate, or invest in stocks, bonds, or other financial instruments.Non-consumer debt is typically secured by collateral, such as a business asset or real estate \u2013 giving the lender more options for collecting the debt if the borrower defaults.When Does the Type of Debt Matter in a Bankruptcy Case?One of the main reasons that the distinction between consumer and non-consumer debts matters involves the Chapter 7 bankruptcy\u00a0means test. Consumer debts apply to the\u00a0means test, while non-consumer debts do not. Failing this means test allows a court to dismiss a Chapter 7 filing and convert it to a Chapter 11 or Chapter 13 filing. The presumption is that the debtor has enough income to repay some or all of their debts. If more than half of their debts are non-consumerable, the debtor does not have to pass the means test to file Chapter 7.While the distinctions between consumer and non-consumer debts play less of an active role in a\u00a0Chapter 13 bankruptcy, they still have an impact. Filing for Chapter 13 places an automatic stay on consumer debts, meaning it stops most collection actions. This stay protects not just the filer but also any codebtors. However, codebtors do not receive the protections of an automatic stay on non-consumer debt.Common Examples of Consumer and Non-Consumer DebtCommon types of consumer debt include:Credit card debtPersonal loansAuto loansMortgagesAlternately, non-consumer debts include:Business loansCommercial real estate loansInvestment loansEquipment FinancingLines of credit for business purposesContact a Debt Law Firm in Florida for HelpWith over 100 years of combined legal experience helping consumers, Loan Lawyers is a trusted resource for anyone struggling with debt. We’ve helped more than 8,000 Floridians get out of debt, and we can put this track record to work on your behalf. We understand that every debt case is unique and requires a personalized approach \u2013 one that we’re ready and willing to offer you during this difficult time.Let us help you regain financial stability and restore your peace of mind.\u00a0Contact Loan Lawyers\u00a0today and take the first step toward a brighter financial future.About the AuthorLatest PostsMatis AbarbanelMatis Abarbanel is the founding partner and senior attorney at Loan Lawyers in South Florida. He focuses his practice on consumer rights, helping homeowners navigate issues such as foreclosure and financial hardship. Matis also brings a wealth of experience from his previous work in personal injury law. As a devout Chasidic Jew, he is committed to making a positive impact in his community and dedicates his efforts to charitable initiatives through his non-profit organization, The Center, which aids at-risk Jewish youth. Matis actively serves clients across South Florida and is passionate about empowering individuals to secure their rights and achieve a better future.When Foreclosure Errors by Lenders Lead to Legal Remedies for Homeowners in Fort LauderdaleWhat Homeowners Can Do When Loan Documents Contain Forged or Altered SignaturesUnderstanding Florida\u2019s Debt Forgiveness Programs and IRS Rules"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Consumer vs. Non-Consumer Debt","item":"https:\/\/www.fight13.com\/consumer-vs-non-consumer-debt#breadcrumbitem"}]}]