What's the lowest amount of debt i can have to file Chapter 7 bankruptcy in California?

Asked over 2 years ago - Lancaster, CA

What's the lowest amount of debt i can have to file Chapter 7 bankruptcy in California?

Attorney answers (4)

  1. Dorothy G Bunce


    Contributor Level 20


    Lawyers agree

    Answered . There is no minimum amount of debt you need to have to be able to file a Chapter7 bankruptcy but the decision to file should be made on common sense grounds since you are only eligible to file Chapter 7 bankruptcy once every eight years. Also, your Chapter 7 could be denied if the court finds that you are able to afford to pay at least 25% of your debts off over a 5 year period. So if you only owe $10K, you would have to show that you couldn't afford payments of $42/month, and that can be very difficult to prove.

    Hope this perspective helps!

  2. Kathryn Ursula Tokarska

    Contributor Level 16


    Lawyers agree

    Answered . There are no minimum debt requirements. Whether you should file or not and when depends on on other facts. Have you tried to settle the debt for a fraction of what is owed? Typically 60 cents on a dollar is very doable, 50 cents very possible, 30-40 cents harder to negotiate but what do you have to lose by trying? Keep in mind that a no at start of negotiation means maybe.

  3. Ruby Ann Wolff

    Contributor Level 3


    Lawyers agree

    Answered . If your debt is low , you may want to consider trying to settle with your creditors if you have any money to offer. You can propose anything to a creditor. All they can say is "no" or ask for more. Be sure to get any written settlement in writing prior to sending money or authorization an electronic transfer! Lawyers can represent you with settlements.

    This answer does not establish an attorney/client relationship.
  4. Chirnese Lashaunda Liverpool

    Contributor Level 9

    Answered . There are no minimum amounts of debt required to file for a Chapter 7 bankruptcy. However, each individual's situation is different. If you speak with a bankruptcy attorney, they should be able to assess your debt/income situation and let you know whether bankruptcy is the best option for you, or whether you should try a bankruptcy alternative.

Related Topics


Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.

Chapter 7 bankruptcy

Chapter 7 bankruptcy is a form of bankruptcy where your debts are canceled, but some of your assets are sold to pay off part of your debt.

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