How far in debt do I have to be to file bankruptcy?
2 Answers from Attorneys
An excellent question. It would depend several factors, mostly your ability to repay. If you are in an advancing carrer position, where your income is steadily rising, you may be more inclined to structure as repayment. If you are in a fixed or lowering income position, you should more strongly consider bankruptcy. To give you a rule of thumb, if you make $50,000.00 per year and are in debt about that same amount, you shuold seriously consider bankruptcy. Also, you may or may not be eligible for a complete cancellation of your debts under a chapter 7. It depends on your assets. You could go into a chapter 13 if not the chapter 7, which is a partial repaymwent or your debts. You really need to have someone look at your financies and recommend the apporpiate course of action. It is also possible to negotiate directly with the creditors for a partial or interest free repayment. Please feel free to contact me if you would like a free initial consultation. Ed DiCato
There is no minimum amount of debt needed to file bankruptcy.
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