How much do you have to be in debt to file Chapter 7?

Home Forums Debt How much do you have to be in debt to file Chapter 7?

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    Jordan Moore
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    Jordan Moore
    Keymaster

    There’s no specific amount of debt you need to have to file for Chapter 7 bankruptcy. It’s more about whether filing makes sense for your situation. Here’s what you should consider:

    1. Means test: You’ll need to pass the means test, which looks at your income over the past six months and compares it to the median income for a family of your size in your state. If you make less than the median, you’re in the clear to file. If you make more, you might still qualify, but there’s a bit more math involved with your expenses and debts.
    2. Type of debt: Chapter 7 works best for wiping out unsecured debts, like credit card bills and medical expenses. For secured debts like a car loan or mortgage, it’s trickier unless you’re okay with giving up the property that secures the debt.
    3. Previous bankruptcy filings: If you’ve filed Chapter 7 before, there’s an eight-year waiting period before you can file again.

    It’s a good idea to chat with a bankruptcy lawyer to see if Chapter 7 is a good fit for your financial troubles and to help you navigate through the process if you decide to go ahead.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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