Yesterday a man asked me if there was a minimum amount of debt that he must owe in order for him to be allowed to file bankruptcy.
Apparently someone had advised him that he didn’t owe enough money in order to file bankruptcy. He was told that the bankruptcy judge would probably dismiss his case because he didn’t really have enough debt to justify filing bankruptcy.
The fact of the matter is that the U. S. Bankruptcy Code does not require a minimum amount of debt in order to file bankruptcy.
The decision to file bankruptcy should not be made simply based on the amount of debt owed because debt is relative. What may be a small amount of debt to one person can be an overwhelming amount to another.
The decision to file bankruptcy should be made after determining whether or not there are realistic options available to pay off the debt in the short term by:
- increasing income through a second job,
- reducing discretionary expenses,
- selling assets, or
- a monetary gift from family or friends.
If there is no realistic way to get out of debt, then bankruptcy may very well be the best option to deal with what for some may seem like a small amount of debt. All the more so if a person has been sued by a creditor and is facing the garnishment of his wages or bank account which would have severe consequences on the debtor’s ability to provide for himself and his family.
If you’re struggling with debt problems, contact me today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
