Do I Qualify for Chapter 13?
By Cathy Moran, California bankruptcy lawyer on Feb 3, 2007 in Venue and Qualifications
Chapter 13 is different from the other forms of bankruptcy relief in that it has limits on the amount of debt the debtor can have and file Chapter 13. Here are the maximum amount of debt permitted in Chapter 13:
- Secured debt: $922,975
- Unsecured debt: $307,675
Secured debts are obligations supported by collateral, such as home mortgages, car loans, tax liens, etc.
Unsecured debts have no collateral, or security, for their payment. Typical are credit card debts, medical bills, personal loans.
Some debts may be partially secured, and partially unsecured, such as the case of a judgment lien that is greater than the value of the debtor’s assets.
These debt limits are adjusted every three years and are scheduled to increase in April, 2007.
Chapter 13 is available only to individuals and the debtor must have a source of income that permits them to make monthly payments according to the plan they propose. More on Chapter 13.
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