Do I Have Enough Debt to File for Bankruptcy?
There is no minimum amount of debt required to file for bankruptcy. However, on average people typically file for bankruptcy when they have tens of thousands of dollars in debt.
If you cannot afford to pay your debt, bankruptcy may be right for you. However, each case is different and we can advise you of other options besides bankruptcy.
Is There a Maximum Debt Limit for Bankruptcy?
If you file a Chapter 13, your debts cannot exceed $1,257,850 in secured debt and $419,275 in unsecured debt.
Chapter 7 does not have a maximum debt limit. If you have a high amount of debt and qualify for Chapter 7, this is often the preferred choice for debtors to get rid of their debts.
How Do I Know If I Should File for Bankruptcy?
There are many factors that you should consider when considering bankruptcy as an option.
- What types of debts do you have? Certain types of debts cannot be discharged in bankruptcy, such as child support, alimony, most student loans, or certain tax obligations. If your debts are primarily in these categories, bankruptcy may not be a great option for you.
- Do you have enough income to pay off your debts? If you are struggling to pay your bills and find that your debt keeps growing, bankruptcy may be an effective way to finally take control of your debts.
- Are you expecting more debts soon? If you are expecting to incur additional debts such as for a surgical procedure, you may want to wait until these debts are finalized to ensure that these debts are covered when you file.
- Are you at risk of losing your home or car, or are your wages being garnished? If you are facing foreclosure, repossession or garnishment, bankruptcy can put an immediate stop to this and give you time to figure out your financial situation.
Questions About Your Debts? Call Us.
We know that filing for bankruptcy can be scary and stressful. If you are considering bankruptcy or have questions about it, feel free to give us a call to learn more about your options. We can go over your eligibility and help you decide whether bankruptcy is the right choice, or if you would benefit more from an alternative option.