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How much debt do you need to file bankruptcy? Is there a certain amount of debt required?
David Shuster is a debt relief attorney with Shuster Law, PLLC in the Dallas—Fort Worth area. In this Quick Question, he explains how you can tell if bankruptcy is the right solution for you.
To learn more, contact the attorney directly by calling 888-365-0921 or by submitting a contact form on this page. The consultation is free and confidential.
The amount of money a person must make or debt they must owe before being eligible to file for bankruptcy varies from person to person. Additionally, the amount of debt a person is in before they choose to file for bankruptcy should also vary.
For example, if it costs around $2,000 to file for bankruptcy, and a person only has $8,000 in debt, it’s completely possible that they could come to an acceptable agreement regarding paying off that debt with their creditors rather than going through the hassle and expense of filing for bankruptcy. Bankruptcy is an effective solution for some people, but is not the only solution. Additionally, it’s important to take into account the cost of filing as well as the effect a bankruptcy can have on your credit score for years into the future.
The best thing you can do if you are unsure about the bankruptcy process or even whether or not you want to go that route, is to talk to an expert. Bankruptcy attorneys help their clients address and eliminate their debt every day, and are well-versed in all the options available to a person. A bankruptcy attorney can go over your credit report with you and will take the time to understand your situation before making any recommendations regarding what steps to take.
Additionally, many of these attorneys offer free consultations, so you don’t have to worry about losing more money while you put a game plan together. Everyone’s situation is different; just because you have debt does not necessarily mean that filing for bankruptcy is the best choice for you. Reach out to a bankruptcy expert to get a personal recommendation for correcting your financial situation.
To learn more, contact David Shuster directly by calling 888-365-0921 or by submitting a contact form on this page. The consultation is free and confidential.
How much debt do I have to have before filing for bankruptcy?
We asked Texas attorney David Shuster in this AskTheLawyers.com™ Quick Question.
That's a great question. There's not really necessarily a minimum amount of debt to file bankruptcy. However, it just has to make sense based on your situation. I've seen some bankruptcies that are filed strictly because of a messed up car loan where you just owe away more than your car's worth.
Okay, and so you have a $500 Capital One card, right? So it just runs the gamut. Now, as far as if somebody just has some medical bills, a Capital One card, and just some random unsecured debt, the bankruptcy does cost between, well, for a Chapter 7, $2000 to $2500 with the filing fees, and so it's a consideration. Obviously, if you only have $8000 worth of debt, well just think about it. You could probably settle with A, B, and C creditor for just a little bit more than a bankruptcy, so you would definitely go that route, and if you're not sure, then obviously we just pick up the phone to call, we can do a credit report, you could pull your credit for it, analyze it with you and do it remotely as well.
Disclaimer: This video is for informational purposes only. In some states, this video may be deemed Attorney Advertising. The choice of lawyer is an important decision that should not be based solely on advertisements.
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