How far in debt do you need to be to file personal bankruptcy? 19 Answers as of February 05, 2011

How far in debt do you need to be to file personal bankruptcy?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
There is no dollar limit. My typical client owes approximately the same amount in unsecured debt that he or she earns in a year.
Answer Applies to: California
Replied: 2/5/2011
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
Every case is different. You should consult with a bankruptcy attorney as to your particular situation.
Answer Applies to: Illinois
Replied: 1/10/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
There isn't any set criteria, it depends on your circumstances.
Answer Applies to: South Dakota
Replied: 1/6/2011
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
It depends on your income, there is no set amount you have to be in debt. Everyone's case is different and based upon their specific financial circumstances.
Answer Applies to: New Hampshire
Replied: 1/6/2011
Law Offices of Lady Justice
Law Offices of Lady Justice | Mona Patel
There is not limit. Mostly anyone can qualify for a bankruptcy. If you contact our offices we can access your situation right away.
Answer Applies to: California
Replied: 1/6/2011
    Christopher Legal Group
    Christopher Legal Group | Shawn Christopher
    There is not a minimum requirement of debt that you should have to file bankruptcy. If you are having difficulty, or are unable to, pay your monthly bills, then you may want to consider filing bankruptcy.
    Answer Applies to: Nevada
    Replied: 1/6/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    That depends on your financial situation. An elder person who only receives social security might be able to file with only $5,000 of debt, or less. However, a single person with $45,000 of income might need to have more than $7,500 of debt. So, it really depends. If you have very little debt ($4000) and you make $45,000 and you are single and your cost of living expenses are high, the court might feel you are capable of paying your debts.

    I use a rule of thumb of about $7,500 for most individuals with exceptions for individuals on Social Security or other fixed income. In those cases, I might file if they have less than $7500 of debt. But it is rare.
    Answer Applies to: California
    Replied: 1/6/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    There is no debt requirement, you have to look at the amount you owe and decide if can pay it.
    Answer Applies to: California
    Replied: 1/6/2011
    DiTocco Law Group, PLLC
    DiTocco Law Group, PLLC | Tony DiTocco
    There is no set answer to that, but generally, bankruptcy is probably your most viable option when your assets and income are not nearly sufficient to cover your dischargeable debts (credit cards, medical debts, most judgments, etc.)
    Answer Applies to: Florida
    Replied: 1/6/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    No minimum. It just has to be more than you can pay.
    Answer Applies to: Virginia
    Replied: 1/6/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Far enough so that you cannot reasonably pay all your debts that you could discharge in bankruptcy within a reasonable amount of time. If you have to sacrifice more important and necessary expenses, such as food, rent or house payments and clothing, then your debt level is probably too high. That is a personal decision and it depends on your income, obligations, age, dependents, life style, damage to credit rating (if you have credit), etc. I would say that if you cannot reasonably pay off all of your dischargeable debts, such as credit cards, personal loans and medical bills, within three years then bankruptcy should be considered. That is only my opinion and not one can tell you how far your debt level has to be to file for bankruptcy. Again, you need to determine what you can afford and file bankruptcy if you cannot afford the debts. Generally, less than $5,000 if you are employed is too little considering the attorney's fee and costs involved. However, there may be other reasons to file for bankruptcy such as lawsuits, eviction and foreclosure. Each person's situation is very different. A financial counselor might help you decide what is best for you.
    Answer Applies to: California
    Replied: 1/5/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    There is no requisite amount of debt one must have in order to file bankruptcy. Whether bankruptcy makes sense for you depends on your particular situation and circumstances. Consult with an attorney to learn more about whether bankruptcy may be right for you. Once you have the facts, you will be able to make an informed decision about how to proceed.
    Answer Applies to: California
    Replied: 1/5/2011
    Diana K. Zilko, Attorney at Law
    Diana K. Zilko, Attorney at Law | Diana K. Zilko
    It really depends on your individual situation. For example, if you are on a fixed income, and have debts in the amount of $10,000.00, you likely won't make much of a dent in them even after making payments for five years. In that case, bankruptcy might make sense. However, if you have more income, the negative effects of bankruptcy might outweigh the benefit of discharging a relatively small amount of debt. I always recommend to my clients that they look at all options, including negotiating with creditors and creating payment plans before deciding on bankruptcy. If you have any further questions, please let me know.
    Answer Applies to: California
    Replied: 1/5/2011
    Steven D. Keist, Attorney at Law
    Steven D. Keist, Attorney at Law | Steven D. Keist
    There is no "amount of debt" requirement to file bankruptcy just the showing of an inability to pay your debt.
    Answer Applies to: Arizona
    Replied: 1/5/2011
    The Law Offices of Robert L. Driessen
    The Law Offices of Robert L. Driessen | Robert L. Driessen
    There is no set amount. If you are seriously contemplating bankruptcy you should sit down with an attorney to see if that is the best option for you.
    Answer Applies to: California
    Replied: 1/5/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Far enough that it makes sense to file. There are many factors to consider and it really depends on your personal circumstances. I once filed a bankruptcy case for someone who had only $2,000 of debt.
    Answer Applies to: California
    Replied: 1/5/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    There is no set amount. You can file for bankruptcy on any amount if you can't pay it back.
    Answer Applies to: California
    Replied: 1/5/2011
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