Do I Qualify For Bankruptcy, Debt Limits Part 4 of 9
By Andy Miofsky, Illinois Bankruptcy Attorney on Apr 30, 2007 in Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, Illinois, Venue and Qualifications
Frequently, potential clients ask if they need to owe a certain minimum amount of debt to file bankruptcy. The most common forms of bankruptcy affecting individual debtors are chapter 7 and chapter 13. Different rules apply to each chapter.
While there is no bottom limit to the amount of debt required to file under either chapter, common sense tells one not to file unless the amount and type of debt is unmanageable. Nevertheless, there is a limit upon the amount of debt a person can have in a chapter 13 case.
As of April 1, 2007 a chapter 13 debtor may not have more than $336,900 in unsecured debt or more than $1,010,650 in secured debt, figures that are adjusted over time. A debtor owing noncontingent liquidated debt exceeding either of these limits does not qualify for chapter 13. Debt limits are common to all bankruptcy courts of this nation regardless of the state in which one files.
Additional topics in this series discuss eligibility, median income test, means test, and discharge issues.
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