How Much Money Can Be Discharged In Bankruptcy?

In bankruptcy, the amount of debt you are eligible to discharge will depend on several factors, such as your bankruptcy type and your debts. Here are some things to consider.

Chapter 7 Bankruptcy

Typically, Chapter 7 bankruptcy discharges most unsecured debts including credit card debt, medical bills, and personal loans. It is important to note that some debts cannot be discharged through bankruptcy, including student loans, taxes, and child support payments. You may also be ineligible for Chapter 7 bankruptcy if you have high income and assets.

Chapter 13 Bankruptcy

The repayment plan for Chapter 13 bankruptcy requires you to pay back a portion of your debts over a three to five-year period. It depends on the terms of the repayment plan and your ability to pay back the debt to be discharged.

Choosing to file for bankruptcy should not be seen as a quick solution for financial problems, and it should only be done after considering all options carefully. To better understand your legal options, you should seek advice from a bankruptcy lawyer if you are considering filing for bankruptcy.

If you are struggling to pay your bills or have a lot of debt that you can’t get under control, be sure to reach out to us to learn about your bankruptcy options. Call 203-265-5222 to learn more about our services so we can help you.