Though many may think it sounds too good to be true, there is no limit to debt discharged in Chapter 7 bankruptcy. A person could be burdened by credit card debt or medical bills that are impossible to pay. Creditors are harassing them and they need to regain their financial future. Suddenly, they learn that it is possible to discharge this debt entirely and wonder if there is a cap or maximum to the amount they can discharge. Fortunately, there is no limit to the dischargeable debt, assuming the person qualifies for Chapter 7.
There are certain conditions that need to be met in order to obtain this discharge. First, a consumer debtor, an individual with personal debt but not business debt, will have to pass the means test. This is an income based test where your income has to be below a certain amount based on your family size to qualify to file a Chapter 7 bankruptcy case. There are certain times even if your income is above this number you can overcome the presumption and still file a Chapter 7 bankruptcy case. This income-based test does not apply to business cases where the majority of your debt is from a business you operated. A bankruptcy lawyer can examine your particular situation to determine if you pass this test and qualify to file Chapter 7 bankruptcy in Branson Missouri.
While there is no debt limit to filing a Chapter 7 bankruptcy case, an experienced bankruptcy lawyer needs to evaluate your income, property, types of debt and previous transfers of property to advise you of the effects of filing the case. The Licata Bankruptcy Firm offers 1-hour free consultation to review your specific case. This no obligation consultation will allow you to ask any questions about your financial situation and determine if you should file Chapter 7. Call us today at (417) 887-3328 to schedule your first meeting.