Everyone has a different amount of financial debt and it is their particular circumstances that determine if they are in need of bankruptcy relief. For some individuals the total amount owed may not seem that big, but compared to their sources of income for paying the debt it just isn’t possible to meet the payments.
For others they are able to go a very long time without feeling they are in financial difficulty. These individuals have a good source of income, but at the same time may have a huge debt load as well. In either case the problem is the creditors want their money, and any of these individuals who do not have enough money to cover the debt may have no other alternatives but to go bankrupt.
The Federal Government has put a cap on the maximum amount of debt that can be declared in a bankruptcy. Currently for secured debt it cannot be anymore that $1,149,525. Then for secured debt the maximum amount is $383,175.
No matter what the debt amount is, anyone in dire financial difficulty should speak to a Houston bankruptcy attorney to see what their options are. Struggling with debt is not easy and can lead to many problems.
Even if the debt exceeds the allowed amount it may still be an option to go bankrupt to at least relieve some of the financial pressure. There are different types of bankruptcy and the individual taking this course of action will have to determine which type they qualify for, and what type of relief it would bring them.