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 North Carolina. The limit is determined by the chapter of bankruptcy that is being filed. Chapter 13 bankruptcy is designed for individuals who have a regular income and who need a payment plan for an acceptable amount of their debt. In this case, the limit for total secured and unsecured debt is $419,275 for an individual and $1,257,850 for a joint case. Chapter 7 bankruptcy is generally referred to as liquidation bankruptcy and is the most common type of bankruptcy in North Carolina. In Chapter 7, you must pass a “means test” based on your income. In North Carolina, if your income is less than the median income for your household size – which is determined by the Census Bureau – then you can file for Chapter 7 regardless of the amount of debt you have. If your income is higher than the median income for your household size then the bankruptcy court will use a means test to determine the amount of allowable debt in your case. When filing for bankruptcy in North Carolina, it is important to know the limits of the chapter you file for as this will determine the amount of debt you are allowed to have. Both Chapter 13 and Chapter 7 bankruptcy have limits on the amount of debt that can be filed.

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

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