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 Rhode Island. According to the Rhode Island Judiciary website, for a Chapter 7 Bankruptcy, an individual must meet certain pre-requisites, including being below a certain debt limit. As of April 1, 2021, the debt limit for an individual is $419,275 in secured debt and $1,257,850 in unsecured debt. These limits are subject to change over time, so it is important to check in with the court frequently if you are considering filing for bankruptcy. When filing for a Chapter 13 Bankruptcy, the debt limits are higher than Chapter 7. However, the amount of disposable income available must be taken into account to determine if filing is the right choice. Additionally, not all debts can be eliminated through either type of bankruptcy. Debts such as student loans, most taxes, child support, and alimony are typically not subject to discharge and must still be paid. Therefore, although there is a limit to the amount of debt that you can have when filing for bankruptcy in Rhode Island, it is important to consider all other factors before making a decision. Discussing your situation with a qualified bankruptcy attorney can provide invaluable guidance and peace of mind.

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