Is there a certain amount you have to be in debt to file for bankrupcy?

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Is there a certain amount you have to be in debt to file for bankrupcy?

We need to know if my father should file for bankrupcy if he due to move to a facility that will take all his SS money. There are personal bills that he can’t pay. How much in debt do you have to be in to file?

Asked on April 14, 2012 under Bankruptcy Law, Wisconsin

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under federal law, there is no certain minimum amount of debt that a person has to have with respect to his or her liabilities to be eligible for a bankruptcy filing. Typically the cost of a bankruptcy filing is $5,000 minimum. If your father's debt is $5,000 or less, the costs of filing for bankruptcy protection versus paying off his creditors suggests simply paying off the creditors.

I recommend that you and your father sit down with a bankruptcy attorney to discuss whether a filing is warranted given his financial situation.


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