According to section 109 of the bankruptcy code, you (or you and your spouse jointly) are generally ineligible to file a Chapter 13 Bankruptcy if your unsecured debts (i.e. credit card debt, medical bills, taxes, student loans) are more than $383,175.00 or if your secured debts (i.e. mortgages, car loans) exceed $1,149,525.00. If your debt exceeds these limits, unfortunately, the only bankruptcy that you can file, which permits repayment of debt (i.e cure of mortgage debt), is a Chapter 11 Bankruptcy.
A Chapter 11 is commonly misperceived as a bankruptcy only for businesses. However, individuals can and sometimes have to file for Chapter 11 Bankruptcy. While there can be benefits to a Chapter 11, the downside is that it is very expensive and generally much riskier than a Chapter 13. If you are above either of the aforementioned debt limits, it is imperative that you contact an experienced bankruptcy attorney to discuss your options.
