How much do I need to owe to be able to file for bankruptcy? 24 Answers as of July 02, 2012

how much do you need to owe to be able to file bankrupcy

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
You will need to pass the means test for a chapter 7 bankruptcy. Contact a local attorney for specifics.
Answer Applies to: Washington
Replied: 7/2/2012
Ferguson & Ferguson
Ferguson & Ferguson | Jackie Ferguson Graham
There is not a specific amount you need to owe to file bankruptcy. But the amount you owe certainly is something you take into consideration to determine whether you need to file bankruptcy.
Answer Applies to: Alabama
Replied: 6/28/2012
Burton Green, Attorney | Burton Green
You do not have any minimum amount to owe before you can file for bankruptcy in chapter 7. There are some high limits on how much you can owe between filing for chapter 13 or having to file chapter 11. Because you will not be able to file another bankruptcy for 8 years in chapter 7 and 4 years in chapter 13, you want to be sure that whatever the amount of debt to be discharged gives you the opportunity to get that new start that bankruptcy provides.
Answer Applies to: Florida
Replied: 6/28/2012
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
Every case is different. In our firm we require debtors to owe at least $7,500 but I have seen individuals file with as little as $5,000.
Answer Applies to: California
Replied: 6/28/2012
Steven Alpers | Steven Alpers
Usually you should have at least $15,000 in debt to make it worthwhile, versus the damage it does to your credit, but depending on the situation you may not have other options. The one option is trying to work out deals with your creditors where you pay a certain amount and they forgive the rest. That depends on your financial situation.
Answer Applies to: California
Replied: 6/28/2012
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    There's no absolute amount you must owe to file a Chapter 7 Bankruptcy. However, since you can only file once every 8 years, don't burn your ticket too easily. If you think you can actually pay of deal your way out of debt, consider trying to pay. Sometimes a Chapter 13 debt repayment plan is a better idea. What really matters is the amount that you owe in comparison to your income. A person that makes $100k per year would be foolish to file a Chapter 7 on $5k of debt. But a waitress who only makes $12k year might choose to file on $5k debt, depending on their future prospects of income. Good luck.
    Answer Applies to: Ohio
    Replied: 6/28/2012
    Bodow Law Firm PLLC | Ted Araujo
    There is no minimum debt level.
    Answer Applies to: New York
    Replied: 6/28/2012
    The Smalley Law Firm, LLC | Cary Smalley
    There is no minimum amount of debt needed to file bankruptcy. I suggest you consult with a bankruptcy attorney to discuss the details of your situation to determine if bankruptcy is the right option for you.
    Answer Applies to: Kansas
    Replied: 6/28/2012
    Law Office of Pho Ethan Tran PLLC
    Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
    To qualify for bankruptcy, you normally need to owe more debts than you are able to repay. Exactly how much you need to owe depends on your particular situation.
    Answer Applies to: Texas
    Replied: 6/27/2012
    Olson Law Firm | Edward M Olson
    There is no minimum. But it is a big decision. You do not file bankruptcy unless you really need it.
    Answer Applies to: Michigan
    Replied: 6/27/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    There is no minimum debt required to file bankruptcy.
    Answer Applies to: New York
    Replied: 6/27/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    There is not a set amount that you need to owe in order to file bankruptcy. A general rule of thumb is that it is not worth filing bankruptcy if $10,000 or less is owed. It will cost about $1500 to hire an attorney and pay the filing fee, to have it done right. It also depends upon which chapter needs to be filed. You can read about chapter 7 in a pamphlet I have written at my website. In a chapter 13, you pay a percentage of what is owed over the course of up to 5 years. So, a small amount of debt probably would not be feasible. Perhaps a consumer credit counselling agency can help to reduce the interest charged and make payments easier. You have to consult with an approved credit counseling agency before filing either chapter, and get a certificate from them that they cannot help you. In cases of smaller debt, they can probably help.
    Answer Applies to: Florida
    Replied: 6/27/2012
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    There is no requirement that you owe a specific amount of money to file bankruptcy. However, if the amount you owe is relatively low you might want to consider alternatives, such as a credit counselor payment plan.
    Answer Applies to: California
    Replied: 6/27/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    There is no amount that needs to be owed to file for bankruptcy. However, given the cost of the attorney, filing fee and other costs you need to determine if it makes sense. It also matters what your ability to pay would be. I have filed cases for only $6,000 debts but in about 90% of the cases the debt exceeds $12,000. In some cases people owe nothing but are being sued for large amounts and filing bankruptcy is the only choice to end the lawsuit that is costing to defend and might end up in a judgment anyway. Some people file to stop a foreclosure alone. There are many reasons to file a bankruptcy case although credit card debt and medical bills are usually the main reasons.
    Answer Applies to: California
    Replied: 6/27/2012
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    There is no minimum or maximum. Talk to an attorney. A very foolish thing to do is use the bankruptcy card if you do not have to due to.
    Answer Applies to: Michigan
    Replied: 6/27/2012
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    There is no minimum amount of debt needed to file bankruptcy. The better question is whether you can afford to pay your debt in a meaningful manner.
    Answer Applies to: Indiana
    Replied: 6/27/2012
    Saedi Law Group
    Saedi Law Group | Lorena Saedi
    There is no set number as overwhelming debt is different for each person. The best thing to do is pull your credit reports and sit down with a bankruptcy attorney and a credit counselor (I would recommend Credibility) to review your options.
    Answer Applies to: Georgia
    Replied: 6/27/2012
    Gregory J. Wald, Attorney at Law
    Gregory J. Wald, Attorney at Law | Gregory J. Wald
    There is no minimum amount of debt that you must owe. However, bankruptcy is an important financial decision and you should not file a bankruptcy unless you really need it.
    Answer Applies to: Minnesota
    Replied: 6/27/2012
    The Stockman Law Office | Mary Stockman Esq.
    It is a question regarding contracts you do not wish to continue, judgements, credit card and medical and other types of debt.? There is no exact amount you must owe, but your total circumstance that determines if you should and can file a bankruptcy petition.
    Answer Applies to: Florida
    Replied: 6/27/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    How much debt you have is a non-issue, unless you are thinking about chapter 13, (in which case you have to think about ch11). In a ch7 the issue is how much you make. See a lawyer about that.
    Answer Applies to: California
    Replied: 6/27/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    There is no limit on the amount of debt, at least for chapter 7. The real question is "should you file for bankruptcy and if so what chapter"? This is a more complicated one. Please understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy. There is no cost for the initial discussion. Please take time to educate yourself about bankruptcy and to determine which attorney is the best to assist you in the process. Don't assume the attorney is being completely honest about their experience and capabilities. Check them out. Avoid the attorneys who advertise on TV or profess a 100% success rate in their Internet ads. It costs hundreds or thousands of dollars for these ads and someone has to pay for them - the clients. These attorneys mass produce the work and do not offer the client the hands on assistance that is necessary in a well-planned bankruptcy. Normally these firms assign all or most of the work to paralegals and the client rarely talks to an attorney. When interviewing the attorney ask them how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask the attorney for references. Ask about their policy of returning phone calls. They should be committed to answering specific questions about your situation and help you understand your options. If, after talking with them you are still confused about the issues you raised, find another attorney. An attorney is should be your guide through this process. They should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. There are hundreds of "bankruptcy" attorneys in Arizona. Of those just a few will fit the criteria set forth above. Again, bankruptcy is a very complicated process and you want to use an attorney who will be there when you need them.
    Answer Applies to: Arizona
    Replied: 6/27/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    There is no minimum dollar amount. What you should be considering is - given the impact on your credit and the fact that you cannot file again for several years (8 years to file another Chapter 7) and the possibility you may end up with a significant debt problem during that time such as medical bills, is it worth filing for the amount of debt you owe versus the impact on your credit and the ability for file in the future.
    Answer Applies to: California
    Replied: 6/27/2012
    Alvin Lundgren | Alvin Lundgren
    There are no minimums or maximums, only the inability to pay your debts.
    Answer Applies to: Utah
    Replied: 6/27/2012
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    There are no minimums. If your debt is too great for you to handle, that is sufficient. For one person, $5,000.00 can be back breaking debt and for another it would have to be $50,000.00 for them to even notice it. Just seek the counsel of a good local bankruptcy attorney, many of which offer free initial consultations, and they can advise you specifically on what you need to know.
    Answer Applies to: Arkansas
    Replied: 6/27/2012
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