How much debt too I have to have to file bankruptcy?
The amount of debt needed to file for bankruptcy depends on the type of bankruptcy you decide to file.
For Chapter 7 bankruptcy, there is no specific amount of debt required to file. However, you must pass a means test to determine if you are eligible for Chapter 7. The means test compares your income to the median income in your state. If your income is below the median income, you may be eligible for Chapter 7 bankruptcy. If your income is above the median income, you may still be eligible for Chapter 7, but you will need to show that you have limited disposable income to pay your debts.
For Chapter 13 bankruptcy, there is a limit on the amount of debt you can have. As of April 2022, the debt limits for Chapter 13 bankruptcy are $1,257,850 for secured debts (such as mortgages and car loans) and $419,275 for unsecured debts (such as credit card debt and medical bills). If your debt exceeds these limits, you may not be eligible for Chapter 13 bankruptcy.
It’s important to note that bankruptcy should be considered a last resort and you should speak with a bankruptcy attorney to determine if it’s the right option for you.