To file a Chapter 13 bankruptcy, there are a number of requirements you will have to fulfill, which also includes your current debt amount. In the event that the total of your non-contingent, liquidated debt exceeds the limits that are set by bankruptcy law, you will not be able to file for a Chapter 13 bankruptcy. If you have only begun filing for a Chapter 13 bankruptcy and believe you might have too much debt, be sure to investigate the sources of your debt. Despite the fact that you are required to disclose your debts and financial history throughout the filing process, some debts are not counted when calculating the debt limit.
Contingent Debts and Liquidated Debts
Contingent debts do not require you to pay unless a particular event happens. For example, if you cosigned on your daughter’s car loan and the understanding was that she would make the required payments, you would not have to pay unless she defaulted on her payments.
Unliquidated debts, however, are debts that have not explicitly determined your responsibility to make payments on them. Examples of these types of debts include personal injury or accident claims. The value of these types of debts are not yet known, but it is understood that you will have a debt to pay off.
Trusted Brevard County Bankruptcy Attorneys
At the Buchalter Law Group, our bankruptcy attorneys in Brevard County are dedicated to helping our clients understand the risks and benefits of their financial choices, so they can make the best possible decisions. We understand that, although bankruptcy might not be ideal, it can be a great way to help relieve you of debt, allowing you to move forward to a brighter future.
Backed by over 35 years of experience, you can be confident in our firm’s ability to guide you through the bankruptcy process and answer any questions you might have along the way.
Contact our office today at (321) 320-6088 to schedule a free case evaluation. Allow us to help you achieve your financial goals.