How Much Debt Do I Need to File Bankruptcy?

Debt in red lettersAre you wondering if you have enough debt to file a personal bankruptcy? If so, the good news is that that the law does not set a minimum amount of debt you must have in order to file bankruptcy. However, since every financial situation is unique, we help each of our clients decide whether or not to file a Chapter 7, 11, or 13 bankruptcy on a case-by-case basis.

If you are ready to get your finances under control, let us help you understand if filing for bankruptcy is the best option for you.

Although there are no minimum debt requirements, you must consider whether filing a case is cost-effective. You want to make sure that the amount of debt you will be discharging makes the time, effort and money it takes to file your case worth it. In most cases, as long as you will be discharging more than a few thousand dollars of debt, bankruptcy will be well worth it!

How do you know if a bankruptcy could benefit you? Consider how many of the following apply to you:

  • You are delinquent on your mortgage payments or your property is being foreclosed
  • Creditors are threatening to seize assets
  • You have garnishments pending against your paycheck or bank account
  • You are overwhelmed by your credit card debt
  • You have collection lawsuits being filed against you
  • An illness or injury has resulted in devastating medical bills
  • You are fighting with your spouse about money and it is negatively impacting your family life
  • You are losing sleep over how you will pay your debts

The above are just a few examples of situations where a personal bankruptcy can help. If you are facing one or more of these circumstances, it does not necessarily mean you should file a case. However, let us review your finances and discuss your debt relief options.

Please keep in mind that every bankruptcy matter is different. If you are considering filing for bankruptcy protection, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 280-5066.

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