How Much Debt Do You Have to Have to File Bankruptcy
We’ve seen people struggle with debt longer than they should have because they told themselves they were not in enough financial trouble to resort to bankruptcy. People wonder how much debt you have to have to file for bankruptcy, but that is the wrong question.
There is no minimum amount of debt necessary to qualify for bankruptcy. What matters is whether you can pay your debts.
If you cannot manage your debts, you need help. Bankruptcy may be a tool to get relief from your unmanageable debt. People who can pay their bills, even when they struggle to do so, know how they’ll get it done. When you can’t see how to get it done, it’s time to reach out for help.
The law office of Michael H. Schwartz, P.C., is a New York bankruptcy law firm dedicated to helping people find solutions to their serious financial problems. Attorney Michael H. Schwartz is committed to giving you the legal advice and legal assistance you need to seek a discharge of unmanageable debt and move toward a fresh start, a better financial future. Arrange a consultation by calling us toll-free at (855) 637-1359 or contact us online.
Contents
What Are the Different Kinds of Bankruptcy?
Two chapters of the U.S. Bankruptcy Code apply to most individual consumers’ (or couples’) financial problems. They offer the most common type of relief sought:
- Chapter 7 Straight Bankruptcy
- Chapter 13 Restructuring of Debt for Individuals with Regular Income
What Is Chapter 7 Bankruptcy?
Under Chapter 7 bankruptcy, most of your debts are immediately discharged or forgiven. This includes credit cards, medical expenses, and personal loans. Any debt collection activities must stop as soon as you file. A straight bankruptcy discharge under a Chapter 7 bankruptcy means you must sell assets to satisfy debts that cannot be forgiven. There are laws to protect most people from losing their homes, cars, clothing, furnishings, retirement accounts/pensions, and business tools.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows people who have a steady income to restructure their debt so they can pay the debts over 3 to 5 years. Restructuring debt often involves renegotiating the terms of certain loans to make the payments more manageable. The court may dismiss certain debts if you comply with the terms of the Chapter 13 repayment plan.
How Can a New York Bankruptcy Attorney Help Me?
Michael H. Schwartz can sit down with you and conduct a complete and confidential review of your financial situation. Federal bankruptcy law is complex and has qualifications that must be met to file for Chapter 7 or 13 relief. But bankruptcy law also offers those who know the law opportunities to apply creative solutions to ease clients’ overwhelming financial burdens and help them regain control of their lives. You should consult a knowledgeable debt relief attorney.
The law offices of Michael H. Schwartz, P.C., in White Plains, NY, has been helping people get their lives back on track throughout the Westchester, Rockland, Putnam County, Hudson Valley, and New York City area for more than 40 years. Contact us to learn how we can turn things around for you at 855-637-1834 or through our online form.
Michael H. Schwartz is the largest filer of bankruptcy cases for people living in Westchester and Rockland counties in New York. A graduate of New York Law School, Michael has been licensed to practice in New York State courts since 1983. He is also licensed to practice in the U.S. Bankruptcy and District Courts for the Southern, Eastern and Northern Districts of New York and the District of New Jersey as well as the Second Circuit U.S. Court of Appeals. He is a graduate of Max Gardner’s Bankruptcy and Veterans’ Boot Camps. Several media outlets have reported on his cases or sought his insights, including The New York Times.
