There is no set amount of debt you need before you can file for bankruptcy. Every person’s financial situation is unique. Schedule a consult with a bankruptcy lawyer, and bring your financial documents. Your attorney will need to assess your average monthly income, assets, and debts before giving you personalized legal advice.
One of the reasons why there is no set amount of qualifying debt is that people have varying concepts of “significant” versus “insignificant” debt. A person who earns $20,000 per year would likely consider a $4,500 credit card bill to be unpayable, whereas a person who earns $400,000 per year would consider that same debt to be minor. In general, bankruptcy may be recommended for an individual who has an amount of debt that would be very difficult or impossible to pay off.
Cutler & Associates, Ltd. is a bankruptcy law firm with a longstanding commitment to providing personalized guidance and attentive service to each of our clients.