Do I have to have a certain amount of debt before I can file for bankruptcy?
An amount that constitutes “overwhelming” or “significant” debt can be different for different people in different financial situations. For that reason, the option of filing bankruptcy is available to those with any amount of debt. That being said, each type of bankruptcy carries its own set of requirements in order to qualify to file. Therefore, in some cases, debt limits do play a role in one’s ability to file for a particular type of bankruptcy.
In a Chapter 13 Bankruptcy, specifically, while there may not be a minimum to the amount of debt one has to qualify, there is a maximum. Every three years, the Chapter 13 Bankruptcy debt limit is adjusted to account for inflation, however, the limits as of April 2019 are as follows:
- Total of all secured debts may not exceed $1,257,850
- Total of all unsecured debts may not exceed $419,275
For more information on secured v. unsecured debts, click here.
While a debt limit does not restrict you from filing Chapter 7 bankruptcy, other factors may. In order to qualify for a Chapter 7 Bankruptcy, one must pass a ‘means test.” For more information on how to qualify for Chapter 7 Bankruptcy click here.
For more information on the difference between Chapter 7 and Chapter 13 Bankruptcy, click here.
If you are experiencing overwhelming debt, and are considering bankruptcy, our team can help. Our experienced bankruptcy attorneys can help determine the right type of bankruptcy for your situation, or offer creative strategies to make a particular bankruptcy type work for you. Set up a meeting to speak with our experienced bankruptcy attorneys by contacting us at (702) 998-1188, info@ljlawlv.com, or schedule a consultation online.
For more information on bankruptcy and other related topics, check out our Bankruptcy blog, or Bankruptcy TV playlist on Youtube.