Do I Need a Certain Amount of Debt to File Bankruptcy?
I am often asked by clients if they have enough debt to file bankruptcy. I am not sure where the idea that you had to have a certain amount of debt to file bankruptcy started, but it’s just not true. You can file bankruptcy with any amount of debt. The amount of debt you are in is really relative to your ability to repay it.
To some people, $10,000.00 of debt might not seem like a lot. But if you are struggling to make ends meet, and don’t have any money left after paying for your essentials, then you’ll never be able pay off $10,000.00. What makes it even worse is that the creditors may be able to sue you and garnish your wages. If you were having problems before, even a small garnishment could result in you being unable to pay your rent/mortgage, or car payments. If you don’t have anywhere to stay or don’t have a car to get it to work things can get worse very quickly. In this situation, it would make a lot of sense to file bankruptcy and get rid of the debt.
Everyone’s situation is different. If you are overwhelmed by debt call me today to schedule a free consultation: (314) 802-8328.