How much debt does it take to file Bankruptcy?

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.

Don’t let holiday debt get your 2019 off on the wrong foot

A lot of Georgians enjoy the holidays but for others it can be a bit of a season of mixed emotions. For many, it’s an opportunity for people to have extra time to spend with family members that they might not get to see often or to attend fun holiday celebrations with friends, co-workers and family. For many though, there can be a substantial monetary cost to the holiday season.  That cost goes beyond even the standard gift buying that Americans are unable to avoid. It includes things like planning and hosting parties or travelling great distances to visit loved ones. People already struggling to make ends meet often find themselves in an untenable situation and all of this added expense during the holidays can lead to significant holiday debt that can put a strain on their already difficult financial situation.

According to the The Motley Fool, nearly 50 percent of all people will find themselves in serious debt by January, nearly all of it related to holiday spending. 8 in 10 of those people will have driven up their debt load buying presents for friends and family. About 3 in 10 will have gone in debt to fund holiday travel and another 20 percent will have incurred new debt in order to fund events and celebrations during the holiday season.

Bloomberg, a major financial news outlet, states that the relatively healthy economy gives consumers the confidence to spend significant amounts this holiday season, especially compared to years past. Amazon has indicated that 2018’s Cyber Monday was the biggest shopping day ever for the company in its history and many other retailers are reporting extremely strong holiday spending during their Black Friday sales.

Mastercard  has put out news that online shopping in the holiday season exceeded 2017 spending levels by 19 percent. Total shopping sales for the entire year of 2018 rose by more than five percent over 2017 levels, as reported by Mastercard.

As we celebrate a new year, don’t let the prospect of serious holiday debt drag you and your family down.  With the average credit card interest rates exceeding 20% and rising, your financial future hangs in the balance with each passing day.  Don’t let the scourge of credit card debt ruin your 2019. Come see the attorneys at Harmon and Gorove today for a free consultation and let us develop a plan that can help you get your finances back on track and secure a bright future for you and your family.