How much debt do I have to have endure to file bankruptcy?

Question

Hi! I have $15,000 in debt and want to file for bankruptcy but was told I don't have enough debt- that I need at least $20,000 to file. Is this true? Please get back to me at your earliest convenience.

Jeffrey Solomon · Answer

There is absolutely no dollar requirement for filing chapter 7.  The issue is one of advisability depending on your income.  Many people file with debt of $15,000.

Eric Lewis · Answer

That is not true. There is no minimum amount of debt to file bankruptcy.

Milton Toro Marquez · Answer

There is not a set amount of debt that is required to file for bankruptcy. There are other factors that will come into play such as household income and other things.  Please contact an attorney for a review of your case.

Harry Roth · Answer

There is no specific amount of money you need to be in debt. Sometimes $15,000 is plenty and sometimes $20,000 is not nearly enough. It depends upon the circumstances. The consideration really is what will happen to you if you do not file, if you just default on your debt and continue living. ?Bankruptcy professionals can help you sort out what the considerations are.  One thing you may not be considering is this. If you file bankruptcy, you can't do it again for 8 years. It is like you have one bullet and you need to save it for the right time, the time when not firing it is worse than not having it anymore. h

William Rubendall · Answer

There is no minimum amount of debt that you need to have in order to file  bankruptcy. However, if the amount owed is within your ability to pay you  shouldn't file bankruptcy.

Charles Schneider · Answer

It can be any amount of money.

Edward Olson · Answer

Your question is really a practical question, not a legal one.      There is no requirement to have a certain amount of debt before you file for bankruptcy.  However, bankruptcy can be expensive and it will adversely affect your credit rating.  So, as a practical matter, you should not file a bankruptcy without REALLY needing to.      Having said that, $15,000.00 is not very much debt.

Roger Bus · Answer

That is not true. There is no "limit" as to how little or how much you can have to file Chapter 7.

Daniel James Wilson · Answer

Not true.  I ask prospective clients: "Is there a realistic chance you can pay this debt within the next five years?"  If not, consider BK.

Steven Alpers · Answer

Probably true. The real question is whether it will help you financially or if you are so badly off that you need to file even though you won't clear alot of debt.

Gregory Neuhaus · Answer

There is no minimum.  Usually, if a person has less than $10,000 we try to look at other options.

Diane Drain · Answer

There is no minimum amount you need in order to file for bankruptcy.  But, sometimes there are other ways to work out credit card debt and avoid bankruptcy.  Check with the folks at National Foundation of Consumer Credit Counselors: www.NFCC.org.  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.

Norman Linder Hull · Answer

For a Chapter 7 bankruptcy, there is no minimum or maximum amount of debt. Consult with an attorney to get the full story.

Jennifer Gustafson · Answer

There is no "minimum" amount required for declaring bankruptcy. A potential debtor should compare his potential earnings to his overall debt. Most clients with only $15,000 in debt, assuming they are employed/employable, are best off pursuing debt negotiation with their creditors. It of course depends on your particular facts and circumstances. Timing in Bankruptcy is very important, so be sure and consult with a qualified attorney before incurring any further debt (or if you anticipate a large receipt of cash via inheritance etc).

Scott Needleman · Answer

There is no minimum amount to file bankruptcy.  An example would  be  a person with $9000 in debt, however, they are being sued and about to be garnished.  They will be coming in to see me to stop it.  A garnishment in Ohio is 25% of your paycheck.

Phong Thanh Tran · Answer

You can file for bankruptcy when you have debts that you are unable to pay for.  So, it depends on the amount of your income.

Barbara A. Fontaine · Answer

You could file with only $15,000 of debt, but try to avoid it. Many creditors may let you pay less on the debt. The years is a long time to have the bankruptcy on your credit record. Only file as a last resort. Good luck to you.

Robert De Groot · Answer

There is no limit as to how much debt you must have before filing for bankruptcy. However, it is a decision that should not be made lightly. Bankruptcy will get you out of the debt, and many people would not want to file on only a small amount. It's really up to you and whether or not you would ever be able to pay the debt you owe. You must contact a consumer credit counselling agency before you file and have them go over your financial circumstances with you.

Loren Zahn · Answer

No, that is not true. There is no minimum amount of debt required for a Chapter 7 bankruptcy. There are maximums permitted for certain types of bankruptcy, but no minimums.

John Brennan · Answer

Filing bankruptcy is a major decision and has great effects on your future.  It should not be done with absolute necessity.  Given the amount of debt it would perhaps be better for you to consult with an attorney and make a effort to restructure the debts without resorting to bankruptcy.  No firm advise can be given without full knowledge of your situation.

Yolvondra Martin-Brown · Answer

There is no dollar limit with regard to filing a bankruptcy.  Depending on your income or the amount of your debt will determine which Chapter you will file.

Giovanni Orantes · Answer

No.  How much debt you have at the time of filing is entirely up to you.  Of course, if you owe less than what it would cost to file the bankruptcy, you probably should not file; however, people have filed for $4000 or less or sometimes the filing is not because they have debt they cannot afford, but because they do not want to lose property, which the automatic stay that goes into effect upon filing may help them to retain.  You should consult a qualified attorney at your earliest convenience.

Cary Smalley · Answer

There is no minimum amount of debt needed to file bankruptcy.  I suggest you consult with a bankruptcy attorney to discuss the details of your specific situation.

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