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penguinlover7

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Has anyone ever heard of there being a limit to the amount of debt you can file on a Chapter 13?
My husband & I filed for Chp 13 so we could keep our house but alleviate the medical bills that total over $350K. First we were told the debt for Chp 13 cannot be over $360K (if not $360K it was around that amount) & if debt is over that threshold we would have to file Chp 11, which I was told is corporation bankruptcy. We tried to proceed at the threshold.

However, we were told we needed to INCREASE OUR SECURED DEBT, or else our monthly repayment amount would be too large. The monthly repayment is determined by the debt to income ratio AFTER debt is removed by bankruptcy. The only debt we would have after bankruptcy was the mortgage on the house & utilities. Due to that our surplus of money each month was figured into the repayment amount. Our monthly repayment amount was too high for us to pay. So we dismissed the Chp 13.

I am frustrated because I am told our debt to income ratio is too high for Chp 7 and we cannot afford the repayment amount on the Chp 13. I need some help. We have lost the house but we still have the $350K in medical bills.

Has anyone had a similar situation? Does anyone have any suggestions?

Thanks!

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