There are a number of factors that determine your eligibility for filing a Chapter 13 bankruptcy, including the amount of your current debt. If the total of your non-contingent, liquated debts amounts to more than the limits set by bankruptcy law, you cannot file for Chapter 13 bankruptcy.
If you’re in the early stages of filing for Chapter 13 bankruptcy and have reason to believe that you have too much debt, you should investigate the sources of your debt – although you are required to disclose your debts and other aspects of your financial history in the paperwork you file during the process, some debts are not counted in calculating the debt limit.
Contingent Debts
Contingent debts are debts that you are not obligated to pay unless a certain event occurs. These types of debts are often are used as a guarantee that you don’t have to pay unless another individual or business defaults on their respective financial obligation. For example, if you cosign on your sister’s car loan with the understanding that she will take care of the payments, you won’t pay unless she defaults on her payments.
Unliquidated Debts
Debts that have not explicitly determined your responsibility to pay them, or do not have a cost that can be exactly calculated are referred to as unliquidated debts. Typically, these debts include personal injury or accident claims -- while its understood that you have a debt to pay off, the price of that debt is unkown, unassessed, or under dispute.
Changing Lives One Client at a Time
When faced with a financial hardship, you can turn to Nguyen Law Group to receive the guidance you need to overcome this stressful time in your life. Our goal is to not only provide excellent legal representation, but to do so while upholding the highest standard of respect, professionalism, and honesty. When you contact our firm, you can trust that your issues are addressed directly by our Rancho Cucamonga bankruptcy attorney.
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