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Confused - Is there a limit to chapter 7?

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    Confused - Is there a limit to chapter 7?

    OK, I am now confused after reading several posts on here. I have been looking at filing for chapter 7 bankruptcy. I have about $28k in credit card debt, a car of about $7k and a student loan with about $2k left on it.

    I stopped paying my credit card bills in december - I was underemployed at the time, and couldn't make the minimum payments. I have just started a new job, still no where near what I was making a few years ago but better than a few months ago. The credit card companies, last I had contact with them (in most cases a few months), had wanted on the order of like $800-$1000 each to bring me up to current.

    Now on here I am getting the impression that you can't file chapter 7 if your debt to credit ratio will be too high after discharging your debts. How would that work - if I can't o chapter 7 what happens? I don't have the kind of money to make those big payments, and I have had verry little luck getting any of the companies to drop those charges.

    #2
    The ratio that is important is the debt to income ratio, not debt to credit.

    If you have too much income such that you have disposable income after paying your reasonably necessary living expenses, then you will probably not be able to file Chapter 7.

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      #3
      Right, but isn't the debt to income ration going to be rather low after the debts have been discharged? I thought it was based on how much you owe against what you earned before you declared bankruptcy, but looking at several posts about getting jobs afterwards leads me to believe that it is also based on what you will have afterwards?

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