Are you facing the prospect of bankruptcy because you can no longer afford to manage the amount of debt you’re dealing with? If so, you may be wondering about all the specific details involved in filing for bankruptcy, and if your situation meets the requirements to do so. One question that many people in this position ask is if there is a minimum amount of debt necessary to file for bankruptcy. The answer to this is no. In order to file for Chapter 7 bankruptcy, you do not have to meet a specific amount of debt, but there will be a variety of other requirements necessary to fulfill in order to qualify.
There is no minimum amount of debt needed to file for bankruptcy because every case is examined on an individual basis. What is unmanageable for one person may not be for another; so many factors are taken into account, so it is wise to speak to the right professionals if you are considering filing for bankruptcy. A bankruptcy lawyer is one of the most important advisors, as having a trusted source of first-hand knowledge and sound legal advice can be invaluable for your situation.
What’s important to examine in bankruptcy cases is a person’s ability to pay their creditors, which is in direct relation to their income, and how much income is necessary to handle their living expenses. This is different for everyone, and different circumstances will play into one’s ability to manage their debt and expenses. The type of debt you have, your employment situation, non-bankruptcy options that apply if you do not have assets and just a small amount of debt will all play into your ability to file for bankruptcy.
In the event that someone is suddenly unable to work, and they are faced with handling living expenses and repaying debt, it may make sense to file for bankruptcy. However, if you have minimal debt and want to file for bankruptcy, it may not go over easily with the courts, because they will view such a filing as unnecessary. Because of the individual nature of every situation, it would be wise to discuss your case with a professional and set the best course of action accordingly.
If you’d like some more specifics that can play into your ability to handle your debt, and whether or not bankruptcy makes sense, here are some factors to consider for your situation:
- How much debt do you have?
- Is your debt able to be cleared by filing for bankruptcy?
- Are you dealing with a lawsuit, collections agencies, or having your wages garnished?
- Can you afford filing fees and attorney fees?
Bankruptcy is not an easy avenue to utilize; while it does provide relief and a chance to start over, it will force you to deal with some long-term effects. Your credit will be wiped clean and eliminated, and you will face having a bankruptcy label on it for 10 years. This will affect your ability to get loans for purchases such as a car or home. The relief brought on by bankruptcy is often very much welcome for those who file for it, but typically, there is a dire need. If you need guidance or would like assistance on filing for bankruptcy, contact the Law Office of Stuart M. Nachbar, P.C today at 973-567-0954.