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  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Paul B.starstarstarstarstar5.0
    I would like to share the amazing experience I have had with this Law firm. I was on the verge of loosing my house because I had not paid my property taxes. I looked for a Bankruptcy at Read More
    July 10, 2023logo
  • S.M.starstarstarstarstar5.0
    When I say this office was absolutely the best, I am not kidding! They have been absolutely phenomenal. Robert has been the best bankruptcy attorney. The whole team has always kept Read More
    April 20, 2023logo
  • Paula D.starstarstarstarstar5.0
    I was referred by a friend to this bankruptcy attorney. Mr. Stiberman and his staff was very courteous, knowledgeable and very caring towards my concerns. I am pleased with the outcom Read More
    April 18, 2023logo
  • R.P.starstarstarstarstar5.0
    The process was relatively easy, I would recommend Stiberman Law to anyone who finds themselves in need of a bankruptcy attorney.
    February 24, 2023logo
  • Jose N.starstarstarstarstar5.0
    I have to say that I have had a great experience with Stiberman Law regarding a bankruptcy and they have been very informative and supportive. They have been very helpful and always ans Read More
    January 20, 2023logo
  • L.L.starstarstarstarstar5.0
    Excellent service. Great bankruptcy attorney and staff. Always informed me of what to expect. My Chapter 13 bankruptcy was smooth and the process was easy thanks to Robert and the Read More
    July 20, 2022logo
  • Sam Sstarstarstarstarstar5.0
    Twelve years ago I was in need of legal representation stemming from the housing meltdown if 2008. Robert Stiberman and his staff handled the matter with complete professionalism and sp Read More
    October 19, 2022logo
  • K.D.starstarstarstarstar5.0
    I was looking for a bankruptcy attorney in Miami, and I found Mr. Stiberman. He and his office were efficient, and they guided me through every step of the process. I am appreciative of Read More
    September 16, 2022logo
  • Carmen C.starstarstarstarstar5.0
    I am so grateful for Stiberman Law, P.A. In 2019 my husband and were faced with a very difficult decision file for Bankruptcy, unfortunately we weren’t able to pay for our credit Read More
    October 26, 2022logo
  • N.M.starstarstarstarstar5.0
    Excellent work from this bankruptcy law firm! I was drowning in debt with my license suspended from a lawsuit I had and thought I would have to spend the rest of my life paying back deb Read More
    August 17, 2022logo
  • R.Z.starstarstarstarstar5.0
    The experience with this office has been great. No problems at all they have kept me straight to doing the right thing and feeling a breeze of peace and being debt free with my bankruptcy.
    August 30, 2022logo
  • F.starstarstarstarstar5.0
    Very happy with Robert and his team. Thanks to them we were able to save our home. Very helpful and knowledgeable in bankruptcy. Best attorney.
    July 28, 2022logo
  • E.R.starstarstarstarstar5.0
    I had a great experience, I just want thank Stiberman law and his team for a great experience also Ana for the help and explaining my case. Appreciate, thank you
    July 25, 2022logo
  • A.B.starstarstarstarstar5.0
    Very good office with my bankruptcy. They have been amazing through this hard process. Very happy with Robert and his staff they are very nice and professional. Thank you stiberman!
    July 23, 2022logo
  • W.J.starstarstarstarstar5.0
    Amazing work by Robert. They are really good with what they do, very attentive and knowledgeable. Customer service and professionalism are top, the lawyer has been great this whole t Read More
    June 25, 2022logo

How much debt I need to file bankruptcy

How Much Debt Do You Have To Have To File Bankruptcy

When considering how much debt do you have to have to file bankruptcy, the bankruptcy code does not impose a minimum amount of debt to file bankruptcy. So, to answer how much in debt to file bankruptcy? We have found that most clients have at least $10,000 in debts when filing bankruptcy.

Chapter 7 bankruptcy eligibility requirements

As noted earlier, Chapter 7 bankruptcy does not require a minimum amount of debt to file. To be eligible for Chapter 7 bankruptcy you must pass a means test to determine if you have disposable income to repay your debts. Chapter 7 does not impose a minimum or maximum debt amount to file for bankruptcy.

You are required to compare your income to the average income of a household of your size in the state where you live. If your average income is below that amount, you passed the means test. If it is over the average amount, you may still be able to apply some expenses to see if you pass the second part of test.

In addition to passing the means test, you must also complete a credit counseling course from and approved credit counseling agency within the 180 period prior to filing for bankruptcy.

A bankruptcy attorney will advise if you are eligible to file, what is needed to file, which type of bankruptcy, and how it will affect your credit.

Chapter 13 bankruptcy eligibility requirements

Although chapter 13 does not require a minimum debt amount it does have a $2,750,000 limit on the total amount of debt an individual can have as of the date of filing. See 11 U.S.C. sec 109(e). Only individuals can file chapter 13, and not businesses. Chapter 11 bankruptcy may be an option if you exceed the Chapter 13 debt limit.

The other requirement for chapter 13 is that the Debtor, or individual filing, have regular income.

What debt can be discharged in bankruptcy?

In Bankruptcy you can discharge most unsecured debts such as credit card debt, medical bills, and personal loans.

Student loans, alimony and child support, and most IRS debt is not discharged in bankruptcy.

Secured debts such as mortgages and car loans must be given special attention since if you list those debts in your bankruptcy and do not pay them in a timely manner, although you may remove your personal liability, the creditor will be still be able to take action to repossess the property or collateral securing the loans.

It is important to obtain a credit report where you will see your credit cards and secured debt.

Factors That Will Help You Determine When To File Bankruptcy

Now that we’ve established that there’s no minimum debt to file bankruptcy, the following factors will help you determine if you should file:

  • Most of your debts are dischargeable in bankruptcy.
  • Your credit score is already below 600 and you are paying high interest rates on credit cards.
  • Your financial situation is not improving and you are looking for a fresh start.
  • Your creditors have filed lawsuits against you or are garnishing your wages.
  • You’ve attempted to make payments and it has become too much to bear.
  • You may be facing foreclosure or repossession of a vehicle.

The above factors are non-exclusive and each situation is different.

When should you not file for bankruptcy

If you cannot discharge the majority of your debts in bankruptcy, you should not consider bankruptcy unless there is some specific benefit that does not involve obtaining a discharge such as saving a home from foreclosure or getting current on secured debt.

You should always consult with a bankruptcy attorney to explore the pros and cons of filing for bankruptcy.

Contact the Stiberman Law Firm For A Free Consultation

Bankruptcy is a complex process, and it’s important to understand how much debt you have to have to file and what are the eligibility requirements. If you are considering filing for bankruptcy, it’s important to speak with an experienced bankruptcy lawyer who can help you navigate the process and protect your rights.

The Stiberman Law Firm offers free consultations so that you can get all of your questions answered before making any decisions. Contact us today to get started on your path to financial freedom.

Written By:

Attorney Robert Stiberman

Robert is an experienced bankruptcy attorney adept at handling Chapter 7, 13, and 11 filings, with more than 15 years of experience in bankruptcy cases. Robert represents clients in both consumer and business bankruptcy ... Read More

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