Written by bankruptcy attorney Robert Stiberman | Updated 2/18/2026
Is There a Minimum Debt Requirement for Chapter 7?
Having filed over 2500 bankruptcies in Florida, I’ve been asked countless times, “How much debt do I have to have to file for bankruptcy?” There is no minimum amount of debt required to file Chapter 7 bankruptcy. Here are some important known and maybe unknown facts about the relation between Filing for Chapter 7 and the amount of debt involved:
Chapter 7 Bankruptcy Debt Minimums or Maximums
There is no minimum or maximum debt restriction on the amount of debt an individual or business can have when filing for Chapter 7 under the bankruptcy code. Although individuals mostly ask these questions, I also discuss businesses, since Chapter 7 relief is also available to businesses seeking to liquidate their operations. In contrast, although Chapter 13 also has no debt minimum, the bankruptcy code imposes a debt ceiling to be eligible for a Chapter 13 discharge.
From a legal standpoint, there is no minimum amount of debt required to file for bankruptcy. However, simply stating this does not address a common question among our clients: How much debt is reasonable to file for Chapter 7 bankruptcy? To answer this, we evaluate the debtor’s complete financial situation. We look at the total amount of debt they wish to eliminate and weigh that against the costs associated with filing for bankruptcy, as well as alternative options like debt settlement. On average, the attorney’s fee to file for Chapter 7 bankruptcy in Florida is approximately $1,800, in addition to a court filing fee of $338. Other costs, such as a credit report and a credit counseling course, should also be considered. Given these expenses, unless there are compelling reasons for filing bankruptcy—such as wage garnishment—we generally do not recommend filing unless clients have at least $10,000 in unsecured debt, which includes credit cards, medical bills, and personal loans. I mention unsecured debts specifically because, with secured debts, you are usually required to repay the debt to avoid losing the asset tied to it, such as a home (mortgage) or a vehicle (auto finance loan).
Chapter 7 Bankruptcy Eligibility Requirements: Does Debt Play a Factor?
Pursuant to 11 U.S.C. sec 707(b)(2)(A)(i), an individual has to pass the bankruptcy means test, or overcome the presumption of abuse, to be eligible for Chapter 7. The means test seeks to determine if you have the ability to pay something back towards your debts by comparing your household income to the state median (of a household of your size). If you have the ability to pay something back, you may have to opt for a Chapter 13 instead of a Chapter 7. Check out our Free Means Test Calculator to see if you are eligible to file for Chapter 7.
Since the means test looks at your income (and expenses), how does your debt play into the equation?
The means test is only applicable to individual debtors “whose debts are primarily consumer debts” See 11 U.S.C. sec 707(b)(1). This means that if the majority of your debts are business debts you do not have to pass the means test.
About Chapter 7
Chapter 7 bankruptcy is known as a liquidation bankruptcy. This means a Chapter 7 Trustee will seek to liquidate your non-exempt assets to pay for your debts. Most debts such as credit cards, medical bill, and personal loans are dischargeable. Debts such as alimony, child support, and most student loas and taxes are not. Learn more about Chapter 7 by reading our Guide to Chapter 7.
Disclaimer: Chapter 7 is not for everyone. There are strict limits based on your family size and income that determine your ability to repay debts and the potential risk of losing property. Always consult with a bankruptcy attorney before taking any action.
Who Is a Good Candidate for Chapter 7 Bankruptcy?
If you are struggling to pay your bills or have fallen significantly behind on debt repayment, and your income is below the specific threshold, you may be a good candidate for filing Chapter 7. However, it may not be best for every situation, especially when there are other options that can protect your property. Good candidates for Chapter 7 include
- You are carrying large balances on credit card bills and having to choose the bills you can pay every month;
- You’re getting frequent calls and letters from creditors;
- Interest and late fees make it impossible to catch up or make a dent in your debts;
- People who rent or who own minimal property;
- Most of your debt can be discharged (like credit cards or medical bills);
If you’re not sure if you are a good candidate for Chapter 7, or need to learn about your other options, it’s important to speak with an experienced bankruptcy attorney who can help you choose the right option.
Schedule a Free Consultation with a Bankruptcy Attorney Today
Whether you have $6,000 in debt or $60,000, we are here to help. With over 17 years of bankruptcy, we are dedicated to helping our clients develop a plan to deal with debt and move forward toward financial freedom. Schedule a free consultation today by calling [phone] or filling out the form below to get started.
