Do I Owe Enough To File For Bankruptcy?
When I was a kid my Grandad used to tell me that if I ate my Lima Beans (Yuck!) they would put hair on my chest! I believed that myth, after all, my Grandad was a good source of information and he could bend a spoon just by looking at it! As you get older though, you learn that if you rely on unchecked myths you can really take a beating in life.
A common myth is the source of a popular question I answer frequently. When they come to my office for their first meeting, to receive their free evaluation, I am regularly asked by my Orlando bankruptcy clients is this: “Are my debts high enough to file for bankruptcy?”
Douglas Jacobs, a California bankruptcy attorney, brings up the question of “Do I qualify to File for Bankruptcy?” in a recent blog. He answers this question with a simple “Yes”. I concur, almost everyone qualifies to file bankruptcy of some type. The more pertinent question, in my opinion: “Should I file for bankruptcy?” Only after an experienced bankruptcy lawyer evaluates your complete financial situation, will this question will be answered.
A Chapter 13 bankruptcy puts limitations on the amount of money a person can owe and still file for that type of bankruptcy, but in Chapter 7 bankruptcy there are no limitations on debt you can owe when filing this type of bankruptcy. Therefore, how much or how little you may be in debt to your creditors does not come in to question when considering whether you qualify to file for Chapter 7 bankruptcy.
According to the current bankruptcy code, a Debtor who files for Chapter 13 bankruptcy cannot have debts which exceed the following limitations: the total amount owed on unsecured debts, like credit cards, medical bills, and signature loans cannot be more than $360,475, and the total amount owed on secured debts, like home loans and car loans, may not be over $1,081,400. As an Orlando bankruptcy lawyer, I am familiar with the Orlando Chapter 13 trustee’s policy of filing a Motion to Dismiss if a Debtor exceeds these debt limitations. The Chapter 13 trustee here in Orlando reviews each case thoroughly to ensure the debt limits are not exceeded and will file a Motion to Dismiss if your debts are over the limit.
The number of myths about bankruptcy are staggering, and it is unclear where most of them originated. As an Orlando bankruptcy lawyer, I believe the myth about having to owe a certain amount to file for bankruptcy ranks prominently on the list of the top bankruptcy myths.
With the knowledge you’ve gained, you now know that you will probably be able to file some type of bankruptcy. Your next step should be to contact an experienced bankruptcy lawyer to review your financial situation. This myth, and many others you may have heard about bankruptcy can be put to rest by a knowledgeable bankruptcy lawyer.
Do you have questions about filing for bankruptcy? Check out K. Hunter Goff’s FREE eCourse. Hire an experienced bankruptcy lawyer to work for you.
Related posts: