A common question I receive is whether there is a minimum debt requirement to file a bankruptcy? Good news! The answer, which may surprise you, is no.
Although there is not a minimum debt requirement to file, there is a maximum amount to file a chapter 13 bankruptcy. In a chapter 13 if you owe $1,257,850 or more in secured debt or $419,275 or more in unsecured debt you are ineligible for bankruptcy relief. The maximum amount of debt is adjusted every three years, with the last adjustment being made in 2019. In chapter 7 bankruptcy there is no maximum amount of debt you can have.
Your attorney will help you go through your options in regards to the amount of debt you have and whether filing bankruptcy is the best choice for you.
Being there is not a minimum debt requirement, even if you have a few thousand dollars in debt you can still file bankruptcy. For example, say you are out of work, have $4,000 in debt, nonstop calls from creditors and lawsuits are coming in. Bankruptcy may give you the peace of mind you need from your creditors and help you get your life back. Another example is, say you only have one creditor, but they are garnishing your paychecks, making you live paycheck to paycheck. Bankruptcy stops most wage garnishments, therefore, although you may have one creditor filing may be in your best interest.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
At Life Back Law we will give you the knowledge and tools to help you make an informed decision about what is best for you and your family. Visit www.lifebacklaw.com today to speak with one of our attorneys. You will be glad you did!