QUESTION
What is the lowest amount owed to creditors to be able to file for bankruptcy?
Asked on Feb 26th, 2011 on Bankruptcy - California
More details to this question:
What is the lowest amount owed to creditors to be able to file for bankruptcy? My sister has many medical debts. I am her POA and handle her bills. I've been making small monthly payments to several creditors and she is about out of money. Some creditors have been paid off. So would like to know if there is a minimum amount for filing bankruptcy.
5 ANSWERS
There is not legal minimum amount of debts required to file for bankruptcy.
A typical bankruptcy debtor owes as much in unsecured debt as he or she makes in a year. For example, if the debtor makes $40,000.00 / year and owes $40,000.00 in credit cards, that would be an average case. If the debtor has the ability to pay back his debts in full, it is usually best for him or her not to file a Chapter 7 bankruptcy. If the debts are less than $10,000.00, I generally do not file bankruptcy for the debtor. If there is only one debt and the debt can be settled with the one creditor, I usually do not file bankruptcy for the debtor. For a specific answer tailored to the facts and circumstances of your situation, call me.
Answered on Mar 02nd, 2011 at 3:10 PM
judith runyon
There is no limit.
Answered on Mar 01st, 2011 at 5:42 PM
William C. Gosnell
There is no floor, it depends on how much are her medical bills and how much is her monthly income is.
Answered on Mar 01st, 2011 at 5:30 PM
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There is no minimum amount but you must consider the cost of filing for bankruptcy. If it costs $2,000 to file for bankruptcy no one would file for bankruptcy having debts of only $2,000 for example. You have to determine yourself after finding out the cost of the case if it is worth doing or working out a settlement with the creditors if possible depending on the amount of the debts that would be dischargeable. There are many other issues to consider besides the debt level. Therefore, a consultation with a lawyer is required. I have filed cases for people owing as little as $5,000, particularly senior citizens who can't sleep at night because of creditor harassment or lawsuits and are not worried about credit issues but want tranquility in their final years of life. It is like pain, each person has a different amount of pain tolerance and if you can't stand the pain of the calls and lawsuits, etc. then go see a bankruptcy lawyer for pain (debt) relief.
Answered on Mar 01st, 2011 at 5:27 PM
There is no minimum debt requirement.
Answered on Feb 28th, 2011 at 3:03 PM