At least $1 – this is the quick short answer to if there is a threshold amount that you need to file for Chapter 7 bankruptcy.
There is no such thing as a debt minimum to get the process started. The more important question is if filing for bankruptcy is strategically the best option in your current situation.
Because debt that is accumulated after a Chapter 7 petition is filed will not get discharged, it’s important to know that you are at a point where you are relatively stable, and will not incur further debt that you cannot afford to pay.
Filing for bankruptcy is as much of situational life question as it is a legal one.
Instead of a debt requirement in order to file for bankruptcy, there is an income threshold that would disqualify you for a Chapter 7 bankruptcy.
You can find the median income data on the U.S. Trustee Program’s website and select the appropriate date range.
The first step is to see if your income is above or below the median income for a family of your size in your state of residence. If your income is below the median, you are eligible to file for Chapter 7 bankruptcy.
If your income is above the median, you will need to complete a Means Test Calculation which is more detailed to determine if you have any disposable income to pay your debt. If you want to complete the Means Test yourself, there are calculators available on the internet. What you need to be mindful of when pursuing this route is that the numbers used to make the calculation are accurate.
Get the process started now and call (714) 805-9623 or (424) 205-8058 for a free 30-minute consultation.
The content on this website cannot be considered as legal advice, and it does not create an attorney-client relationship.