There is no hard and fast rule to determine how much is too little debt to file. Generally, debtors who have less than $10,000 owing in unsecured debt may have some other options that could prove to be more cost-effective or less damaging than filing bankruptcy. This should be determined on a case-by-case basis. We use our free initial consultation to help lay out your options in filing or taking other action. In a Chapter 7 bankruptcy, there is no limit as to how much debt can be discharged. In a Chapter 13 bankruptcy, Congress has set limits under the Bankruptcy Code for secured and unsecured debt. As of April 1, 2010, the limits for secured debt in a Chapter 13 bankruptcy are at $1,081,500, and limits for unsecured debt are at $360,525. These limits are scheduled to increase again on April 1, 2013. Calculating your debt under these limits can be fairly complex, and we can help you determine whether your debts fall within the limits.
Leave A Comment