How Much Debt is Necessary to File Bankruptcy?

Florida is one of the sunshine states that were hit hard by the Great Recession. Even today, countless Floridians are still feeling the sting from losing their jobs or having lost their homes because of underwater mortgages. If you are currently dealing with overwhelming debt that you are unable to repay, it may be time to begin weighing the debt relief options available to you.

You may be wondering if you must have a certain amount of debt before you can file for bankruptcy. Likewise, you may want to know if there are limits on how much debt you can carry when you file for a Chapter 7 or Chapter 13 bankruptcy.

There is no set amount of debt which is necessary in order to file a Chapter 7 or a Chapter 13 bankruptcy. Each person's financial situation is unique and must be judged based on the amount of debt, the household income, assets owned by the debtor, and many other factors. For example, a truck driver who was in an accident and was uninsured may have his license revoked until the amount of the judgment is paid. Even if the amount of the judgment is fairly minimal, this person's livelihood will be lost without the ability to file bankruptcy.

Further, there is a significant difference between a person who is earning $24,000 a year carrying a $20,000 debt load and the person who earns $80,000 a year with the same debt load. This is why it is really necessary to have a good consultation with an attorney who will sit down and explain all the options, and which options are reasonable. However, there are limits as to how much secured and unsecured debt a person may have when filing a Chapter 13.

Are you contemplating filing for bankruptcy? We suggest you get in touch with an Orlando bankruptcy attorney from Richard A. Heller, P.A. to discuss your options. Our legal team has 45 years of combined experience, and we are accredited by the Better Business Bureau. Committed to helping individuals resolve their debt-related problems, we welcome the opportunity to help you!