QUESTION
How do I know if I should file bankruptcy or not?
Asked on Nov 27th, 2012 on Bankruptcy - California
More details to this question:
I have a $1,300.00 debt to the Medical Center and a $4,000 debt to AT&T that I can not repay. The Medical Center has already started a case against me in order to get their money. I was just wondering if Bankruptcy was an option for me or not?
14 ANSWERS
You should seek the advice of an experienced bankruptcy attorney to determine if you this is the right option for you. Most bankruptcy attorneys offer free consultations. They can look at your specific situation and advise you. One of the most important aspects of bankruptcy is not level of debt but the ability to repay. If you cannot live on your income and pay your creditors then you might want to consider bankruptcy.
Answered on Nov 29th, 2012 at 10:52 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Nov 29th, 2012 at 8:59 PM
Daniel James Wilson
That's an awful small amount of debt for BK. Have you tried to work out a payment plan. BK will cost $1000-2000, so I would try to settle.
Answered on Nov 29th, 2012 at 7:59 PM
Is that all? Bankruptcy is appropriate when there is virtually no chance of ever repaying even 25% of your debts over a 3 - 5 year period of time. Typically, I believe someone should not consider filing unless they owe around 50% of their annual income to creditors, and I am reluctant to file any case where the debt that can be eliminated is less than $25K. After all, you are only eligible to discharge debts in bankruptcy once every 8 years, and what would happen if you became very ill or injured after filing a bankruptcy and had no right to eliminate tens or hundreds of thousands of dollars in new debts.
Answered on Nov 29th, 2012 at 8:48 AM
William H. Von Willer
I would advise you against filing for bankruptcy, your debt burden is not that severe.
Answered on Nov 29th, 2012 at 8:00 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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You only owe a bit over 5 grand. While there is no minimum amount that you can file bankruptcy on, it might be better to contact a consumer credit counselling agency, which you must do if you are going to file bankruptcy, and see if they can help you get the debt reduced, rather than filing a bankruptcy.
Answered on Nov 29th, 2012 at 7:58 AM
Bankruptcy Attorney serving Buford, GA
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Kenneth A. Parker, PC
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Yes, Bankruptcy may be an option for you. There is no minimum debt limit needed to file a Chapter 7 case BUT you need to weigh benefit against the cost of filing - Such as, the Bankruptcy Case will cost you money to file, the Bankruptcy will stay on your credit report for 10 years and you will not be able to file another Chapter 7 for 8 years. 5,300 is not that much in the scheme of things, but if you have other debt, it may be worth checking out your options by contacting a Bankruptcy Attorney.
Answered on Nov 29th, 2012 at 7:43 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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You have 4300 in debt and will spend about 2000 in bankruptcy costs for an attorney...Your call.
Answered on Nov 29th, 2012 at 7:00 AM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Robert Parkinson Taylor
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You should do your best to work it out with these creditors. The amount of money you owe is too low, in my opinion, to file bk. One, you don't want to blow your "get out of debt" card for a small amount. Especially if you have medical issues or no insurance. Two, there's a good chance the court might disallow your bankruptcy based on your ability to repay. Three, in that it would probably cost you a $1,000.00 with a crummy attorney, the cost outweighs the benefit (especially in light of the fact that it may be challenged).
Answered on Nov 29th, 2012 at 6:31 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes - If you qualify.
Answered on Nov 29th, 2012 at 5:13 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Bankruptcy is an option but the amount of your debt is not large so considering the cost of the bankruptcy, its effect on your credit long term and your inability to do it again for eight years, it may not be a good option. It depends on many things such as your income and age. You need to discuss this with a bankruptcy attorney unless you can work out a payment arrangement to settle the lawsuit and maybe settle the AT&T debt if possible.
Answered on Nov 29th, 2012 at 5:12 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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Every person?s situation is unique. Many bankruptcy attorneys offer free consultations. Take advantage of this.
Answered on Nov 27th, 2012 at 5:15 PM
Bankruptcy Law Business Attorney serving Asheville, NC
Partner at
Pitts, Hay & Hugenschmidt, PA
2 Awards
Yes, bankruptcy is an option. It doesn't matter how much you owe: if you can't pay, and you are being sued, you really should consider a bankruptcy case.
Answered on Nov 27th, 2012 at 5:14 PM
Bankruptcy & Debt Attorney serving Los Angeles, CA
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Law Offices of Shirin Behrooz
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The best thing to do is get a consultation with a lawyer. They will review your assets and liabilities, and determine whether bankruptcy is a good option, and if so, what type of bankruptcy.
Answered on Nov 27th, 2012 at 5:14 PM