How much debt do I need to file a chapter 7 or 13 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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How much debt do I need to file a chapter 7 or 13 bankruptcy?

I have about $17,000.00 in student loans and about $9,000.00 in other debt. I don't own a home or place of my own and my new job pays a gross of $20,000.00 yearly.

Theodore N. Stapleton, PC
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There is no minimum debt to file Bankruptcy. It depends upon your specific circumstances.

Answer Applies to: Georgia
Replied: 1/12/2012

Answer By J.M. Cook

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There isn't a minimum amount of debt to file bankruptcy.

Answer Applies to: North Carolina
Replied: 1/9/2012

Bankruptcy Law office of Bill Rubendall
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There is no minimum amount of debt that needs to be owed to qualify for bankruptcy. However, if the debts are relatively small you may want to consider alternatives such as making payment arrangements with your creditors. Generally speaking student loans must be paid in spite of bankruptcy. There is a narrow exception in the student loans create an undue hardship. The latter is determined by the bankruptcy judge after filing a lawsuit, called an adversary proceeding, to determine dischargeability of the student loan.

Answer Applies to: California
Replied: 1/6/2012

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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A bankruptcy will take care of the $9,000.00 but ti will do nothing for your student loans. You need to pay them, at least the amount of interest that will keep the debt from growing. Consider looking up the "Ford Program" on the Internet. That might help you lower the payments.

Answer Applies to: California
Replied: 1/6/2012

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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Based only on the amounts of debt you could file either chapter 7 or 13.

Answer Applies to: Indiana
Replied: 1/6/2012

Answer By Kevin Bruning
Bruning & Associates, PC
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There is no minimum amount of debt that one must have before filing bankruptcy. However, student loans are generally not dischargeable. The credit card debt can be discharged in a chapter 7. Your prospects for a chapter 13 depend on your total financial picture.

Answer Applies to: Illinois
Replied: 1/6/2012

Ashman Law Office
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You may qualify for either or both depending on other information we don't have. Neither will eliminate the student loans, but both affect those loans. You should make your decision after consultation with experienced counsel.

Answer Applies to: Georgia
Replied: 1/6/2012

Answer By Ken Parker
Kenneth A. Parker, P.C.
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There is no minimum debt limit that you need to file for bankruptcy but it makes sense that you would weigh the amount of debt you have verses the cost of the bankruptcy. In general, you cannot discharge student loans without showing extreme hardship, which is difficult to do. If you have $9,000 in other debt, this debt may be dischargeable in a Chapter 7 and it would allow you to concentrate any extra funds toward your student loans.

Answer Applies to: Georgia
Replied: 1/6/2012

Answer By Asaph Abrams
Law Office of Asaph Abrams
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There is no strict debt threshold for filing chapter 7. Chapter 13 has MAXIMUM debt limits. Student loans are generally nondischargeable (there are very rare exceptions). For more good stuff, Google my name and "who can file chapter 7 [or 13] bankruptcy?" This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon. It creates no attorney-client relationship; it may be pertinent to CA and/or its Southern District Bankruptcy Court only, and it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

Answer Applies to: California
Replied: 1/5/2012

Answer By Katie M. Stone
The Law Offices of Katie M. Stone
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With the limited information provided it seems like a chapter 7 would be the best; however, keep in mind that neither a chapter 7 or a chapter 13 will discharge your legal obligation to pay on the $17,000.00 student loan debt you have. You would still be required to pay this back after the bankruptcy as student loans are considered non-dischargeable debt. You may want to explore all of your options other than bankruptcy such as a repayment plan with your creditors or a settlement agreement. Although 9K is a substantial amount of debt with your income, bankruptcy might not be the best solution for you. I suggest that you speak with an attorney about your situation in more detail to make sure that bankruptcy is right for you. Most bankruptcy attorneys will offer a free initial consultation.

Answer Applies to: Florida
Replied: 1/5/2012

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