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Does a Certain Amount of Debt Make You Eligible for Bankruptcy?

Posted By Allmand Law Firm, PLLC || 8-Nov-2013

Does My Situation Qualify for Bankruptcy?

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 foreclosure or repossession.

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.

Categories: Bankruptcy
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