Top Bankruptcy Attorney in Nassau County, NYC - Ronald D. Weiss, P.C., Attorney at Law

Debt Limits on Filing for Chapter 13 Bankruptcy It seems counterintuitive that there are actually debt limits involved in the bankruptcy process when the bankruptcy system itself was designed to relieve those overwhelmed by debt. For those with only a preliminary knowledge of the bankruptcy system, it may seem even more confusing to learn that the debt limits apply to petitions for Chapter 13 bankruptcy, in which the debtor agrees he can and should pay a portion of his restructured debts over a fixed repayment period. In order to understand this seeming discrepancy, it is important to distinguish between the different types of individual bankruptcy and the means by which the court decides the type a debtor qualifies for. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 1 changed the qualifications for individual bankruptcy and provided for the conversion of a Chapter 7 liquidation petition into a Chapter 13 wage-earner’s plan if it appeared the debtor could aff...