So many people these days owe a lot of debt. But do you owe enough to be able to file for bankruptcy? A phoenix chapter 7 bankruptcy lawyer will be able to look at your debt situation and determine if you are a good candidate for bankruptcy. In the meantime, here’s a little more information to determine if you owe enough to consider bankruptcy.
Do I Owe Enough to File Bankruptcy?
Bankruptcy law does not require that debtors to have a certain minimum debt amount to be eligible for filing bankruptcy. Filing for bankruptcy is dependent on your individual circumstances. Here are some considerations:
Reasons to File Chapter 7
Chapter 7 bankruptcy should be chosen if the following apply:
- You have no hope and have no future hope of being able to repay any debts
- Your debts do not have co-signers on them
- You are going to be sued by creditors
- You don’t qualify for Chapter 13
Reasons to File Chapter 13
Chapter 13 bankruptcy should be chosen if the following apply:
- You have already filed Chapter 7 in the past six years
- Your debts have cosigners
- You will be able to pay your debts within three to five years
- Your income disqualifies you from filing for Chapter 7
- You need relief from collection proceedings and you want to pay your creditors back but just need some breathing room to get your finances under control
- You want to be able to file a Chapter 7 bankruptcy some time in the future
- You are behind on your mortgage
- You owe back taxes
- You have assets that could be liquidated in Chapter 7
- You’re a farmer with debt not related to your farming operations and do not qualify for Chapter 12
Quick Note: There are maximum debt limits for Chapter 13 bankruptcy. While there is no minimum debt amount required to file for bankruptcy, a debtor cannot have more than $1,149,525 in secured debt or $383,175 in unsecured debt if he or she wants to file for Chapter 13 bankruptcy. These amounts are adjusted periodically to account for inflation.
Remember that a phoenix chapter 7 bankruptcy lawyer will be able to look at your debt situation and determine if you are a good candidate for bankruptcy.
Working with a Bankruptcy Attorney
Bankruptcy can be an overwhelming process. That’s why we advise that you work with a phoenix chapter 7 bankruptcy lawyer that is familiar with various debt repayment options. We are committed to helping our clients understand their rights and options under the bankruptcy law and developing the debt relief solution that makes the most sense for each individual. We invite you to call (602) 648-3274 or contact our Arizona office to schedule a free initial consultation.
668 N. 44th St., Ste 320, Phoenix, AZ 85008