How Much Debt Do I Need to Qualify for Bankruptcy? 

 Posted on February 19, 2023 in Qualifying For Bankruptcy

If you are struggling with debt, a loved one or trusted colleague may have suggested that you look into filing for bankruptcy. Due to your financial challenges, you may have already tried to apply for a loan to bridge the gap between your current circumstances and a brighter financial future. After being denied, next, you may have tried to take out another credit card. After having a request for financing denied again, you may – very understandably – be wondering how exactly a person may qualify for bankruptcy.

It may settle some of your fears to know that there is no minimum debt limit required for bankruptcy filers. Instead, you will primarily need to concern yourself with whether you have a substantial enough debt burden to justify filing for this form of debt relief.

Bankruptcy Eligibility Requirements

You will need to meet specific eligibility requirements in order to file for bankruptcy. The court is mostly concerned with your income situation. If you are a low-wage earner, you will likely qualify for Chapter 7 bankruptcy relief. If you earn enough income consistently to make manageable debt payments, you will likely qualify for Chapter 13 bankruptcy relief.

While there is no minimum requirement concerning how much debt an individual must have before filing for bankruptcy, there is a limit to the amount of debt that a Chapter 13 filer can carry when filing for relief. A single filer – not a married couple filing jointly – cannot exceed $1,010,650 in overall debt and $336,960 in unsecured debt when filing for bankruptcy in 2023. In future years, these numbers – in addition to the higher limits for married couples filing jointly – will be adjusted for inflation.

Additionally, you may be prohibited from filing for bankruptcy again if you took advantage of this opportunity very recently. The law imposes restrictions on how often someone can qualify for bankruptcy relief.

Contact a Skilled San Antonio Bankruptcy Lawyer Today to Learn More

If you have questions about filing for bankruptcy, you can connect with the helpful San Antonio, TX bankruptcy lawyers at Law Offices of Chance M. McGhee at any time. Because bankruptcy is such a complex area of law, there are times when Internet-driven research simply will not give you the insight you need. Instead, you can receive personalized legal guidance by attending a free legal consultation at our office.  

To schedule a confidential case evaluation at no cost, call our team at 210-342-3400 or fill out a contact form on our website. We look forward to hearing from you.

Source:

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/process-bankruptcy-basics