I am often asked, “how much debt do I have to be in to file bankruptcy?” To file bankruptcy in New York and New Jersey there is no minimum amount of debt that you need in order to file bankruptcy. In order to determine if you should file bankruptcy based on the amount of debt that you have, you should ask yourself:
- Can I afford to pay the debt?
- What types of debt do I have?
- Is my income enough to pay the debt back in a reasonable amount of time?
Can I Afford to Pay my Debt and Not File Bankruptcy?
To determine if you can pay back your debts, you will need to get a copy of all of your paystubs. If your income is high enough then a Chapter 7 bankruptcy may not even be available to you. Instead, you may have to file a Chapter 13 bankruptcy to help you eliminate your debt. If your debt is minimal and you can pay it back it probably does not make sense to file bankruptcy. However, if your creditors are going to sue you, garnish your wages, levy your bank account, or trying to foreclose then filing bankruptcy should probably be something that you consider in the near future.
What Debts are Able to be Included in Bankruptcy?
If you file bankruptcy in Staten Island or New Jersey, you will need to make sure that the debts you have are able to be discharged. Unfortunately, not all debts are able to be eliminated through bankruptcy. A Chapter 7 bankruptcy can eliminate medical debt, credit card debt, personal loans, some tax debt, mortgage debt and vehicle loans (keep in mind the last two are only dischargeable if you plan to give up the property in the bankruptcy or the property was already foreclosed). If you are looking to get rid of student loans, criminal fines, EZ pass toll violations, and student loans, then chapter 7 bankruptcy may not be the best debt-relief action for you. However, filing a chapter 13 bankruptcy may be a good way to reorganize your debt and help you get back on your feet.
If you are thinking of filing bankruptcy in Staten Island New York or New Jersey contact our office today at 973-979-9078. Karra L. Kingston Esq. is dedicated to helping people in debt file for bankruptcy.