Tons of people ask the question each day, “Do I have enough debt to file bankruptcy?” The long and short of it is that the US Bankruptcy code lists no minimum amount of debt to be able to qualify for bankruptcy. However, in consumer bankruptcy, there is a debt ceiling that prohibits an individual from filing a Chapter 13.
The Minimum Amount of Debt
As we stated previously, there’s no minimum amount of debt you have to have to file for bankruptcy. That being said, the amount of debt you have should be a determining factor in whether or not you decide file a Chapter 7 or Chapter 13 bankruptcy. Should you have creditors who are unwilling to work with you, you find yourself owing more debt than you can pay back during the the next five years, or you are facing lawsuits due to debts in collection the time may be right to file bankruptcy. There is, however, only one way to decide if the time is right and that is to contact a local bankruptcy attorney to analyze your individual situation.
The Maximum Amount of Debt
Some people find themselves faced with insurmountable debts. One thing you should understand is that there is a limit to the amount of debt you have have in order to file a consumer bankruptcy. Owing more than $1,184,200 in secured debt or $394,725 in unsecured debt as of 2018 disqualifies you from being able to file Chapter 13 bankruptcy. If you find yourself in this situation then you may be forced to work on settling your debts or reducing outstanding principal in order to lower your debt load before we can file a Chapter 13. .
Bankruptcy in Georgia
Making the decision to file for bankruptcy protection is one that has long lasting implications and therefore shouldn’t be rushed into. Making contact with a local bankruptcy attorney like Harmon and Gorove can give you a better idea of where you stand financially and will allow you to determine which of your debts can be eliminated during bankruptcy and which ones you will have to pay back.