When you are unable to make your payments on a loan, credit cards, or medical bills, filing for Chapter 7 bankruptcy may be your best option, especially if you’re struggling to keep up with your housing costs. But how much debt do you have to be in to file Chapter 7?
We are asked this question frequently, and there is no minimum or maximum amount of debt you have to have to declare bankruptcy. However, there are several other factors that determine your eligibility as well as whether you’re a good candidate to file. Our bankruptcy attorney in Florida is exploring these factors to help you make the right choice for your financial future.
Chapter 7 bankruptcy is known as liquidation bankruptcy. Your assets are liquidated, and they are sold to pay for your debts, and after this is completed, the debts included in the bankruptcy are discharged, meaning you no longer owe the creditors. In most cases, as long as you maintain good standing with your mortgage and car payment, you will be able to keep your property (though maybe not your equity) and some property is exempted.
Chapter 7 is not available for everyone. There are strict limitations based on your family size and your income to determine your ability to pay your debts.
Most unsecured debt can be discharged under Chapter 7 bankruptcy proceedings. This includes:
Some debts can not be discharged, including:
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
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.
Whether you have $6,000 in debt or $60,000, we are here to help. With over 20 years of legal experience related to 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.
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