How much do you need to owe before declaring bankruptcy?

Question

I owe about $3000 in credit card debt, and have owed this for about 7 months now. I haven't been able to find employment where I live, I have a vehicle that doesn't run, and the creditor is threatening to sue me.

I want to file chapter 7. Is it possible, even though I don't owe that much?

Answer 1

The word  "bankruptcy" is mostly accepted in courts of  law when it comes to companies being unable to function and pay their debts.

Courts do agree that  fixed assets, furnitures and fittings,  vehicles etc. should be sold to reduce their indebtedness and finally, for insurance to honour their obligation and pay necessary claims.

For individuals, "bankruptcy" may not be accepted!

By right, your creditors  are supposed to take you to court. (You are not authorised to file anything)

You are to defend yourself in court that PRESENTLY, you are unemployed,  no fixed asset and moving vehicles.

No court will kill you. Your creditors will be ordered to exercise patience until you are gainfully employed, even if  it  takes you 2 years to secure one.

Interest will be worked on $3,000 at the agreed rate for (say 2 years), you will thereafter sign an undertaking (your employers involved) that you will be reducing your debt by so much weekly or monthly.

When legal costs and interest are added to your principal debt of  $3,000, you could end up having to refund $15,000

Answer 2

I think it varies based on your income and the area you live in.  Call a lawyer, most give free consultations.  It'll fry your credit for a while though, so you may want to reconsider it over 3k.