By: Heather Culp
The short answer is, there is no specific dollar amount of debt required to file Chapter 7. The longer answer follows.
The best way to figure out whether you are a good candidate for bankruptcy – including Chapter 7, which is just one type – is to talk with an experienced bankruptcy attorney. The attorney should review your debts, your assets, and your income. This will help the attorney understand your overall financial situation. The attorney should then discuss your legal options with you, including pros, cons, and estimated cost for any services the attorney can provide you. You will then be in a position to make an educated decision about whether Chapter 7 is right for you.
To better understand how each person’s financial situation is unique, let’s assume that the total amount of your debt is $40,000. If your household income is $400,000, bankruptcy may not be the best option for you. However, if your household income is $60,000, a bankruptcy may provide meaningful relief.
Feel free to reach out to Essex Richards if you want to discuss your financial situation and whether we can help.