One of the most frequent question people ask me is “Do I have too much debt for Chapter 7?”
The short answer is that there is no debt limit for filing Chapter 7. Meaning, you can have $10,000 of debt or $100,000 of debt and you can still file. Credit card debts are generally dischargeable. This does not mean however, you should go and rack up your credit card debt before filing your bankruptcy. This can lead to problems or even prohibition against your discharge. Remember, bankruptcy is for the honest debtor.
There is however, an income limitation for filing Chapter 7 bankruptcy. SEE: Census Bureau Just because your income exceeds the income limit does not mean you are disqualified from Chapter 7. Many factors must be carefully taken into consideration. For example, is your debt primarily non-consumer? Do you have secured debt such as a home or a vehicle? Medical expenses? Child care expenses? It’s important to consult with a bankruptcy attorney to go over your personal circumstances.
Do you have questions or need advice about your situation? Contact us.
