People with regular income who are struggling with their debt problems can take charge of their finances by filing for Chapter 13 bankruptcy. This allows them to use their disposable income to repay their debts over a 3- to 5 years repayment plan. At the end of their repayment plan, most individuals who satisfy the qualification criteria can wipe out their non-priority dischargeable debts such as medical bills, personal loans, credit card bills, etc. However, there are limitations to the amount of debt. The current debt limitations stand at $1,257,850 in secured debts and $419,275 of unsecured debts.
If your debt exceeds this limitation amount, you need to file for an individual Chapter 11 bankruptcy. This debt limitation changes every 3 years, and the amount mentioned above is accurate through April 2022. Usually, people avoid filing for Chapter 11 bankruptcy as it is costlier than other options available. However, suppose your debt obligations exceed the chapter 13 limits. In that case, you can call 888-297-6203 to know more about bankruptcy discharge in Los Angeles.