How much debt do I need to file a bankruptcy? It’s a common question. What seems like a small amount to one person can seem like millions to someone else. Generally speaking, the biggest qualification for a bankruptcy is debt you cannot pay. But how much is enough?
The best place to start is your credit report. You can pull a free credit report annually (www.annualcreditreport.com). Many people are surprised when debt and judgments show up from years ago.
It’s a common misconception that unpaid debt will just disappear. It is not magic – debt doesn’t just go away. Your creditors may write off the balance but the debt is still owed. Creditors just consider you to be a bad customer but are not collecting.
If total debt is approximately $10,000 or more, consider a bankruptcy. A Chapter 7 bankruptcy will eliminate any obligation to the balance and prevent creditors from calling you, suing you or trying to collect. If you have less debt but are behind on a car payment or a mortgage, a Chapter 13 bankruptcy can be an option. You can consolidate your bills into an interest free repayment plan and bring delinquent loan payments current.
If you are considering a bankruptcy, contact Geraci Law. We offer free phone and in-office bankruptcy consultations to figure out the best option for you. If we cannot help you, we’ll point you in the right direction.