How Much Money Can Be Discharged In Bankruptcy?

The amount of money that can be discharged in bankruptcy will depend on several factors, including the type of bankruptcy you file for and the nature of your debts. Here’s a general overview:

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, most unsecured debts such as credit card debt, medical bills, and personal loans can be discharged, meaning you are no longer legally required to repay them. However, some debts such as student loans, taxes, and child support payments cannot be discharged through bankruptcy. Additionally, there are income and asset limits that may affect your eligibility for Chapter 7 bankruptcy.

Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, you are required to pay back a portion of your debts over a three to five-year period through a court-approved repayment plan. The amount of money that can be discharged will depend on the terms of the repayment plan and the amount you are able to repay.

It’s important to note that bankruptcy should not be viewed as a quick fix for financial problems, and the decision to file should be made after careful consideration of all available options. If you are considering bankruptcy, it’s advisable to consult with a bankruptcy attorney who can evaluate your individual circumstances and help you understand your legal options.

If you are struggling with bills and need help, reach out to Saeed & Little LLP. Call 317-685-2426 to learn more about your options and to get started on your bankruptcy case.