What is the lowest amount owed to creditors to be able to file for bankruptcy? 18 Answers as of March 02, 2011

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.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
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.
Answer Applies to: California
Replied: 3/2/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
There is no minimum debt requirement. If you can't pay what you owe, then you can't pay it. I did one once for friend who owed only $3,400.00.
Answer Applies to: California
Replied: 3/2/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
There is no minimum.
Answer Applies to: South Dakota
Replied: 3/2/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
No, there is no minimum to file bankruptcy.
Answer Applies to: California
Replied: 3/2/2011
Uriarte & Wood, Attorneys at Law
Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
there is no minimum amount, unless you are planning on filing a Chapter 13, in which case there are maximum limits on secured and unsecured debts. talk to a lawyer to see what options you have.
Answer Applies to: California
Replied: 3/1/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    There is no limit.
    Answer Applies to: California
    Replied: 3/1/2011
    Rhonda R. Werner Schultz, PL
    Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
    There is no minimum amount of debt owed in bankruptcy. You should meet with a skilled bankruptcy attorney to find out your options and to see if bankruptcy is the best choice for your sister.
    Answer Applies to: Wisconsin
    Replied: 3/1/2011
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    There is no floor, it depends on how much are her medical bills and how much is her monthly income is.
    Answer Applies to: Tennessee
    Replied: 3/1/2011
    Cohen & Kendziorra, P.A.
    Cohen & Kendziorra, P.A. | Robert S. Cohen
    No there is no minimum amount of debt owed to qualify for bankruptcy.
    Answer Applies to: Florida
    Replied: 3/1/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    There is no minimum, however, you want it to be in your sister's best interest. There is a pre-filing credit counseling course and post-filing financial management course requirements that must be paid for, and the filing fee of $299.00. If you use a service, then the fees will increase from there.
    Answer Applies to: California
    Replied: 3/1/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    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.
    Answer Applies to: California
    Replied: 3/1/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    No minimum.
    Answer Applies to: Alabama
    Replied: 2/28/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    There is no minimum debt requirement.
    Answer Applies to: California
    Replied: 2/28/2011
    The Carmichael Firm
    The Carmichael Firm | Booker Carmichael
    There is no min amount. Please call the Murray and Murray Law Firm in order to discuss all your bankruptcy options.
    Answer Applies to: Louisiana
    Replied: 2/28/2011
    Law Offices of Steven A. Wolvek
    Law Offices of Steven A. Wolvek | Steven A. Wolvek
    There is no minimum. What I look at is whether or not it makes sense to try to settle with creditors and not file bankruptcy or whether or not the person is judgment proof (has no assets and no income other than ss, ssi or welfare).
    Answer Applies to: California
    Replied: 2/28/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    This is a case by case scenario. Depending on income and assets, there will be a limit on how much debt you need to have. I would say between $5000-$7500 is the least amount you can have.
    Answer Applies to: California
    Replied: 2/28/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    There is no low limit. Can file BK for any amount of debt. The only debt limits exist in Chapter13 and that's if you owe too much. Thank you.
    Answer Applies to: California
    Replied: 2/28/2011
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney