How far in debt do you need to be to file chapter 7 bankruptcy?

Question

I am in about 17000 debt

Answer 1

Try using: http://DebtAnswersNow.com

I used their service a couple months back and they consolidated all my debt and lowered my total debt 40%.

Answer 2

when your monthly payments + cost of living (rent, utilities, food, etc) to the debt exceeds your monthly income you could qualify for bankruptcy.

You may want to consider which type of bankruptcy you want to do as you may end up in a better condition with your creditors if you were to go into a plan to pay each one a settlement than if you were to file and force your creditors to write off the credit lines

Answer 3

You need to be in debt to the extent that you don't have the likely resources to both live and pay off the debt.  Usually, this boils down to how much money you actually earn.  If you have a minimum wage job or are on unemployment or something, it would probably be enough debt.  But, if you were making an average living I doubt that $17K would qualify; they would probably require you to go ch 13, instead.

Answer 4

There's no fixed amount of debt which you need to have to file bankruptcy. If your debts are higher than you asset you can go for bankruptcy.

I think the bankruptcy should be the last resort as it remain on your credit report for more than 10 years and if the individual is listed as having filed for bankruptcy, it results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. During the period of bankruptcy and after bankruptcy you would face difficulty in getting loan, purchasing and leasing and building your credit.

Try for debt consolidation as they are experts in that field and they can help you to plan and pay off your debts. They can also negotiate with your creditors and reduce your debts.

Answer 5

You would qualify.  Hire an attorney.  However, have you considered credit counseling?

Answer 6

That's not that much.  You could pay that off easily even on a small salary.  If it is from credit cards, you need to find a way to get the interest rate down.  You also need to track your income and expenses so you know where to reduce your costs.  Eat at home, cut the cable, get a roommate, but there is a way.  Bankruptcy should be the last resort.