One of the most common questions I get asked when consulting clients about bankruptcy is, would you file bankruptcy with this amount of debt? People are worried that the amount of debt they have is not enough to warrant a bankruptcy filing. There is no magical number or threshold amount of debt that is necessary in order to file for bankruptcy. As with most legal questions the answer as to whether you have enough debt to file bankruptcy is - it depends.
A common reason why people are considering bankruptcy is credit card debt, it's not uncommon to see people with $80,000 up to $200,000 in credit card debts. Though one client recently had only about $12,000 in credit card debt. Twelve thousand dollars is a lot of money, however in this client's situation $12,000 might as well have been $1.2 million. This client was unemployed, living with parents, and had no good prospects for employment in the near future. They simply did not have the ability to pay this debt. So for this client, a chapter 7 bankruptcy made sense. The rule of thumb is not how much debt you have but your ability to repay it that should be the determining factor as to whether bankruptcy is a good option.
I offer a free 30 minute phone bankruptcy consultation where we can discuss your specific situation and determine whether a chapter 7 bankruptcy could be the answer to your current financial difficulties.