In order to file for Chapter 13 bankruptcy, your existing debt cannot exceed a certain amount. If you plan to file for Chapter 13 bankruptcy, you should be aware that there are ways to have some of your existing debts excluded from the total amount of your calculated debt. Below, we explain some of things you need to know before you file for Chapter 13 bankruptcy.
What Are the Debt Limits for Chapter 13 Bankruptcy?
The debt limit amount actually fluctuates every three years. As of now, the debt limits are:
- Secured Debt Limit: $1,184,200
- Unsecured Debt Limit: $394,725
As discussed above, if your debt exceeds these amounts, you will need to find another strategy to help you qualify for Chapter 13 bankruptcy. You should first check to see if your debts actually count towards the limit. In some situations, you can divide your debts into different categories. For example, spouses can sometimes file under different chapters if their combined debt puts them over the limit. One spouse might try filing for Chapter 13, while the other might try filing for Chapter 7 bankruptcy.
Can Chapter 20 Bankruptcy Help Me Qualify for Chapter 13 Bankruptcy?
Filing for a Chapter 20 bankruptcy can be another way to help you qualify for Chapter 13 bankruptcy. You will first need to file for Chapter 7 in order to wipe out your unsecured debt. Sometimes, this reduction can be enough to qualify you for Chapter 13 debt limits.
Are you struggling to qualify for Chapter 13 bankruptcy? If so, you should immediately speak with our qualified and experienced bankruptcy attorneys. Our team is dedicated to helping our clients find solutions for their financial difficulties. Speak with one of our lawyers today.
Contact our Detroit bankruptcy attorneys start your free consultation.