There is no minimum debt amount required to file for Chapter 7 or Chapter 13 bankruptcy. Here again, we take it on a case-by-case basis when advising clients on their best option.
Factors include, but are not limited to:
- Your ability to pay the debts back on your own. If you have debt, no matter what the amount, we advocate getting resolution. Don’t leave unpaid debt on your credit. Either set up a plan to pay your creditors back within a reasonable time (2 -3 years) or file for bankruptcy to eliminate the debt with a Chapter 7 or establish favorable repayment terms through Chapter 13. Unpaid debt can snowball with accrued interest and late penalties. It can also tank your credit score and prevent you from receiving new credit sources (mortgage or car loan, etc.). Don’t assume that just because a creditor is no longer sending you bill or a debt has been “charged off” that you are off the hook. Dormant debt can quickly become a headache when it is sold to a collector who pursues a judgment and garnishment. We recommend resolving these debts to ensure a solid financial future and gain financial peace of mind.
- Pending creditor actions. If you are facing a judgment and wage garnishment, this can seriously derail your whole budget and compromise your ability to pay important bills such as your mortgage or rent, transportation costs, etc. If you are behind on your mortgage and facing a home foreclosure, it is time to take legal action to stop the process before you lose your home. Generally, if a creditor is taking legal action to collect on a debt or take back your property (home, car, etc.), it is time for you get legal protection, such as a Chapter 7 or Chapter 13 bankruptcy.
Our firm specializes in Chapter 7 and Chapter 13 debt resolution. We offer a free, confidential consultation to advise you on how to best resolve your debts and move forward with your life. Call today at 866-261-8282, we offer phone and same day in-office consultations.