Is there a limit to the amount of debt I can have when filing for bankruptcy?

Yes, there is a limit to the amount of debt you can have when filing for bankruptcy in Maryland. The limit is determined by the median income for the size of your household in the state. The median income is the number that divides the higher half of incomes from the lower half of incomes. The median income is based on statistics released by the U.S. Census Bureau. If your household income is equal to or less than the median income for the size of your household, you are eligible for Chapter 7 bankruptcy. This type of bankruptcy will discharge most of your unsecured debts such as credit card debt and medical bills. If your household income is above the median income for the size of your household, you are not eligible for Chapter 7 bankruptcy. You must look into filing for Chapter 13 bankruptcy, which requires you to pay back a portion or all of your debt through a repayment plan. The State of Maryland is known to have one of the highest median incomes in the nation. Consequently, the amount of debt you must have to be eligible for Chapter 7 bankruptcy is also higher in Maryland than in other states. Depending on the size of your household, the debt threshold may be as high as $103,000. It is important to look into the median income for the size of your household to determine if you are eligible for Chapter 7 bankruptcy.

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Is there a limit to the amount of debt I can have when filing for bankruptcy?

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