Is There a Minimum Amount of Debt Required to File Bankruptcy?

This is a question I hear quite often as people contemplate filing for bankruptcy. The answer is no. The decision to file for bankruptcy relief is relative to the debtor’s financial situation. For example, it is not uncommon for someone who is living on social security or other fixed income to file for bankruptcy only owing a few thousand dollars in credit card debt.

The problem here is ridiculous interest rates coupled with people who, because of their limited incomes, are unable to make anything more than the minimum monthly payment on these debts. It creates a vicious, never-ending cycle which a bankruptcy snaps.

Whether or not you have a mountain of debt, or very little debt, so long as that debt appears to be beyond your ability repay, you likely will qualify for bankruptcy.

This again comes back to the importance of seeking out and hiring an attorney who is able to competently analyze your options and help you determine the best course of action to take.

For more information regarding minimum debt requirements, or for other bankruptcy law questions, contact The Larkin Law Firm at http://www.live-debt-free-now.com