Numerous individuals wonder if they have enough debt to file for bankruptcy protection. The fact of the matter is that there is no legal minimum set for in the US Bankruptcy code to become eligible for bankruptcy. There is, however, a debt ceiling that limits an individual from filing Chapter 13 bankruptcy.
Minimum Debt to File Bankruptcy
As aforementioned, there is no minimum debt in order to file for bankruptcy. However, the amount of debt you owe should be a factor in your decision to file for either Chapter 7 or Chapter 13 bankruptcy. If you have more debt than you can pay back over the course of the next five years, have creditors who are not willing to work with you on repayment, or are facing adverse actions such as lawsuits due to debts it may be time to consider filing for bankruptcy. Discussing your individual case with Houston bankruptcy attorney will give you a more firm insight into answer the bankruptcy question.
Maximum Debt to File Bankruptcy
If you are suffering from insurmountable debt, then you should know that there is a limit to your debt as it pertains to bankruptcy. If you owe more than $1,184,200 in secured debt or $394,725 in unsecured debt as of 2018, then you won’t be able to file Chapter 13 bankruptcy. If this is the case, then you may have to work on settling your debts or reducing your principle in order to decrease your debts before filing.
Bankruptcy in Texas
The decision to file for voluntary bankruptcy protection is one that has long-standing personal and financial implications and therefore shouldn’t be entered into in haste. Contact your local bankruptcy lawyer in Texas to find out which of your debts can be eliminated during bankruptcy and which you will have to pay back in order to know for sure what is in your best interest.