Individuals dealing with unmanageable debts have options to find relief. Bankruptcy is one of the most common debt relief options available to help people get a fresh start. One of the most common questions people have about bankruptcy is if they have enough debt to qualify. Our Irvine bankruptcy attorneys explain how much debt you need to have to file for bankruptcy.
Debt Amount Needed to File for Bankruptcy
Debtors don’t need a certain amount of debt to be eligible for bankruptcy. The best way to determine if bankruptcy is the right option for you is by determining if you will be able to repay your debts outside of bankruptcy. If the answer is no, bankruptcy can help you find relief.
Does Your Debt Qualify for Bankruptcy?
However, you will need to ensure that your debt can be discharged through bankruptcy. For the most part, bankruptcy eliminates unsecured debts (not secured debts). Unsecured debts are debts that aren’t tied to collateral, such as credit card debt, medical bills, personal bills, and more.
Secured debts are debts linked to collateral, such as cars, homes, boats, land, etc. With unsecured debts, creditors can simply collect the items if you can’t make payments.
Should I File for Bankruptcy?
Financial problems often occur unexpectedly – impacting your livelihood and your family. Regardless of the amount of debt you owe, if it has become unmanageable, bankruptcy can be a good option for you. You should consider filing for bankruptcy as quickly as possible if a creditor is suing you, garnishing your wages, or trying to repossess or foreclose on your property.
Irvine Bankruptcy Attorneys
Our Irvine bankruptcy lawyers at McFarlin LLP have guided thousands of clients through the insolvency process. Whether you have developed debt from credit cards, student loans, medical bills, late mortgage payments, or taxes, we can give you the insight you need to make the best decision for your circumstances.
If you have questions about bankruptcy and how it can benefit you, contact us today at (949) 570-5025 to schedule a consultation!