Is There A Certain Amount Of Debt To Qualify For Bankruptcy?

amount of debt to qualify for bankruptcy

Do you worry on a daily basis about the amount of money you owe? This question alone might mean that you are over your head and should start thinking about doing something about it. Because it’s probably become clear to you that hiding from your debt or being unwilling to face it has not made it go away. 

Some signs that you may owe too much include: 

● You fear looking at your bank or credit card statement 
● You regularly pay your bills late 
● You have asked for small loans from friends and family 
● You hide from some phone calls, fearing it will be a bill collector 
● Whatever savings you had, is gone 
● You fall behind on rent payments 
● Your debt doesn’t let you get a good night’s sleep 
● You might have turned to alcohol or drugs to escape your money problems 

How Do You Know You Have Too Much Debt? 

Borrowing money is just fine, particularly if it’s going to get you the house or the car. Borrowing money to pay your bills is a completely different story. If your debt grows so much that it makes it impossible for you to put aside some money for emergencies, if you spend way over what you make and have no savings for retirement, you owe too much. 

What’s the top amount you may owe? The ideal number would be for you to have debt that does not exceed 20% of your monthly take-home pay. 

Is There A Certain Amount Of Debt That You Have To Have Before Filing For Bankruptcy? 

No, there isn’t. When you are considering filing for bankruptcy, many other factors come into play, even more than the amount of money you owe. What are those factors? 

Your Particular Circumstances 

Is your income not enough to pay back your debts? Are you being harassed by creditors? Have your wages been garnished? Is your home about to be foreclosed on? 

The Type Of Debt You Have 

It’s a well-known fact that almost all student loans don’t disappear even when filing for bankruptcy. Other such obligations are child support and alimony as well as your tax obligations. 

Whether You Can Afford To Pay Back What You Owe 

If your income is high enough to allow you to pay back your debts, you may not qualify to file for Chapter 7. If you do earn enough to pay back what you owe you might be better off just trying to get back on track and leaving bankruptcy as truly the last resort. 

Whether Your Creditors Are Open To Reaching A Resolution That Doesn’t Involve Bankruptcy 

If you have been sued by your creditors, if your wages have already been garnished or if your car is about to be repossessed, it may be too late to avoid filing for bankruptcy. 

Think About Bankruptcy 

Filing for bankruptcy is not an easy decision and the consequences on your future credit may leave long-lasting effects. That’s why nobody should make that decision for you but yourself. Talk to a bankruptcy attorney about what you have been going through and get professional advice as to how to proceed. You may uncover some interesting options that may make life easier for you. Schedule the initial no-obligation consultation today. Click here for more information.

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