How Much Debt Makes You Eligible for Bankruptcy?
Some debtors wonder if you have to have a specific amount of debt in order
to file for bankruptcy protection. In most cases you do not need a set
amount of debt to file, but it depends on which chapter you are seeking
protection with and other details relating to meeting qualifications.
For instance, most
Chapter 7 bankruptcy filers may not need a certain amount of debt to get protection, but they
do need to meet qualifications outlined in order to get the protection.
Chapter 13 bankruptcy filers may have limitations in the amount they have, but most filers are
able to file without a problem.
Chapter 7 filers may not have limitations to meet for debt amounts, but
they should be able to provide details about their financial situation
that will prove their inability to make payments. This is true especially
if your wages are being garnished, your facing lawsuits, or a
You have to take the means test which reviews income and finances of the
debtor. If you are looking to get debt discharged, there are certain unsecured
debts that qualify for elimination. The type of debt you have, monthly
income, and amount of assets may help determine if you qualify.
Chapter 13 filers seeking to reorganize their debts may have limitations
to pay attention to when they file. The debt limit has been known to change
due to cost of living adjustments, the economy and inflation. Unsecured
debts and secured debts may not be over a certain amount, but to understand
the actual amount limitations for your state, discuss details with your
Dallas or Fort Worth bankruptcy attorney. In most cases, debtors can file
when they meet income qualifications.