Do I Qualify For Bankruptcy, Debt Limits Part 4 of 9

30 Apr Do I Qualify For Bankruptcy, Debt Limits Part 4 of 9

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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Andy Miofsky, Esq.

Andy Miofsky holds the highest AV PREEMINENT rating from Martindale Hubbell Law Directory and a perfect 10.0 from AVVO. Andy is an Illinois consumer rights lawyer with offices in Granite City Illinois. Andy represents people with bankruptcy and student loan debt problems throughout the Southern District of Illinois since 1979.
1Comment
  • Tara Jacobs
    Posted at 00:00h, 18 June

    I am in debt about $15,000 and on a fixed income of $797.00 per month plus $56.00 in state assisted food stamps. I have approximately a $700.00 in outgoing bills every month. I am thinking about filing chapter 7 and would like to know if I qualify. Could you please advise me accordingly?
    Thank you very much
    Tara Jacobs