How much debt do I need to file a chapter 7 or 13 bankruptcy?

Question

I have about $17,000.00 in student loans and about $9,000.00 in other debt. I don't own a home or place of my own and my new job pays a gross of $20,000.00 yearly.

Theodore N. Stapleton · Answer

There is no minimum debt to file Bankruptcy.  It depends upon your specific circumstances.

Jeffrey Cook · Answer

There isn't a minimum amount of debt to file bankruptcy.

William Rubendall · Answer

There is no minimum amount of debt that needs to be owed to qualify for  bankruptcy. However, if the debts are relatively small you may want to consider  alternatives such as making payment arrangements with your creditors. Generally  speaking student loans must be paid in spite of bankruptcy. There is a narrow  exception in the student loans create an undue hardship. The latter is  determined by the bankruptcy judge after filing a lawsuit, called an adversary  proceeding, to determine dischargeability of the student loan.

Eric Lewis · Answer

Based only on the amounts of debt you could file either chapter 7 or 13.

Kevin Bruning · Answer

There is no minimum amount of debt that one must have before filing bankruptcy.  However, student loans are generally not dischargeable.  The credit card debt can be discharged in a chapter 7.  Your prospects for a chapter 13 depend on your total financial picture.

Glen Edward Ashman · Answer

You may qualify for either or both depending on other information we don't have.  Neither will eliminate the student loans, but both affect those loans.  You should make your decision after consultation with experienced counsel.

Kenneth Parker · Answer

There is no minimum debt limit that you need to file for bankruptcy but it makes sense that you would weigh the amount of debt you have verses the cost of the bankruptcy. In general, you cannot discharge student loans without showing extreme hardship, which is difficult to do.  If you have $9,000 in other debt, this debt may be dischargeable in a Chapter 7 and it would allow you to concentrate any extra funds toward your student loans.

Asaph Abrams · Answer

There is no strict debt threshold for filing chapter 7. Chapter 13 has MAXIMUM debt limits. Student loans are generally nondischargeable (there are very rare exceptions).  For more good stuff, Google my name and "who can file chapter 7 [or 13] bankruptcy?"  This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

Philip Boardman · Answer

There is not a threshold amount of debt that you must have.  You really  have to determine for yourself if filing is the route to go.  A rule of  thumb that I offer in situations such as yours is whether you can take  care of the debt in the next 2-3 years.  If you can not, then bankruptcy  may be a good option for you.

Paul Stuber · Answer

To qualify to file a bankruptcy you need only owe more than  your assets  are worth or be unable to pay your bills as they come due. For some  a few  thousand is more than they would be able to pay and if you had a high  paying  job you might be able to handle a large debt.

Samuel Lee Tucker · Answer

There is no minimum or maximum for a chapter 7. I recommend a cost-benefit analysis. A Ch 7 cost between $1500-2000 usually. If you are about to be garnished or have a repo, file. If you can't pay off your unsecured debt in 2 years, file.

Daniel James Wilson · Answer

Student loans are not dischargeable.

David Ayer · Answer

Your student loans will not be dischargeable in any chapter of bankruptcy. You should consult with a debt relief attorney to determine your options for restructuring your debt into something manageable.

Deborah Stencel · Answer

There is no minimum amount of debt required to file a Chapter 7.  As a general rule, if your dischargeable debt is less than it would cost you to file, don't file.  Next, if the amount of your debt is an amount you could reasonably pay off in the foreseeable future, don't file.  $9,000.00 is impossible for some people and doable for other others.  Your $17,000 in student loan debt won't be eliminated by bankruptcy so consider the amount you need to pay this off in a reasonable time when calculating whether you can handle your $9,000 in credit card debt or not. At $20,000 per year, you may have trouble paying your credit cards and if it gets to the point that you are facing a garnishment of your wages, a Chapter 7 may be something for you to consider.

Loren Zahn · Answer

There is no minimum debt per se, just as long as you have more debt than you can pay off. Unfortunately, you will not be able to discharge your student loans (most likely) but the other debt you describe sounds like it can be discharged.

William Wood · Answer

There is no specific minimum amount of debt needed to file for  bankruptcy.  What you have listed would qualify.  However, student loan  debt cannot be discharged except under extraordinary circumstances.

judith runyon · Answer

Student loans are not dischargeable in ch. 7. In ch. 13 you pay everything back.

Stacey Selleck · Answer

I believe you would be a candidate for a Chapter 7 bankruptcy which would eliminate all of your credit card debt.  However, you will likely remain responsible for your student loans.

Tony Carballo · Answer

You can file for any debt amount you feel you will not be able to pay. Student loans are not dischargeable in bankrutpcy unless you proof you will never be able to pay it because of permanent disability or other special circumstances and you have tried every available deferment and waiver application available and then you have to file a special lawsuit in bankrutpcy called an adversary proceeding to prove all that and  hope for the best.  Therefore, you wil only be able to discharge probably the $9,000 in other debt assuming that is credit card debt or other dischargeable debts.  Whether that is enough for you depends on whether you feel you can ever pay that.  With your income it is unlikely you will be able to pay that much debt.  Unless your income is likely to increase substantially in the foreseeable future, bankruptcy seems like a good option although the amount of dischargeable debt you have is not very large.  You must also consider the cost of the bankrutpcy case in deciding whether bankruptcy is the best option for you.

Cary Smalley · Answer

There is no minimum amount of debt needed to file for bankruptcy.

Find a Lawyer

Ask a Lawyer

Read Legal Articles

Ask a Lawyer

Read Legal Articles

How much debt do I need to file a chapter 7 or 13 bankruptcy?

20 ANSWERS

Find Local Bankruptcy Lawyers

Helpful Resources

Ask a Lawyer