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

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

Lancaster, CA -

Attorney Answers (4)

Dorothy G Bunce

Dorothy G Bunce

Bankruptcy Attorney - Las Vegas, NV
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!

Kathryn Ursula Tokarska

Kathryn Ursula Tokarska

Bankruptcy Attorney - San Diego, CA
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.

Ruby Ann Wolff

Ruby Ann Wolff

Bankruptcy Attorney - Elk Grove, CA
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.
Chirnese Lashaunda Liverpool

Chirnese Lashaunda Liverpool

Chapter 7 Bankruptcy Attorney - Van Nuys, CA
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.

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