Limits on Chapter 7 and 13 Bankruptcy
When it comes to finances, people of all walks of life and every vocation may run into trouble at some point in their lives. Regardless of what a person’s salary may be, life-altering events, loss of income, and increased financial liabilities can cause a person to struggle with supporting themselves and their family members. If an individual is having trouble making timely payments on his or her debts and is struggling to make ends meet, he or she may consider filing for bankruptcy.
The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy. Although some people may qualify for both types, there are income limits and other requirements that may prevent some individuals from filing for a certain chapter. For more information contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.
Common Bankruptcy Limitations
Most bankruptcy cases are largely dependent on the specifics of the applicant’s financial situation, but there are some common limitations that may be enforced, including the following:
- Applicants who have incomes higher than the national family median may not be able to file for Chapter 7 bankruptcy if their disposable income would allow for adequate repayment of debts
- Applicants who have secured debts of more than $1,010, 650 may be ineligible for Chapter 13 protection
- Persons with unsecured debts of $336,900 or above may be ineligible for Chapter 13 protection
By filing for bankruptcy, some individuals may find themselves able to discharge certain debts and gain financial freedom. Others may be able to restructure their payment plans to pay off their debts and emerge in a better situation in the long run.
Contact Us
If you are considering filing for bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 today.
