How much debt do you have to have before you qualify for bankruptcy?

UPDATED: Aug 31, 2011

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How much debt do you have to have before you qualify for bankruptcy?

I am a single mother with 1 child and another on the way. I have a car loan and other smaller bills that are very over due. I don’t believe there are any other options for me at this time.

Asked on August 31, 2011 Kentucky


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

There are maximum limits for certain kinds of bankruptcy, but no minimums. However, since bankruptcy will profoundly affect your credit rating for up to a decade, it is a last resort. Also bear in mind that certain debts cannot be discharged: for example, bankruptcy will not eliminate child support of alimony (probably not an issue), guaranteed student loans, many tax debts, or debts arising out of having been DUI or DWI.

Below I'll paste a link to a U.S. government website that provides a lot of good information about bankruptcy. The types of bankruptcy that may be applicable to you are Chapter 7 and Chapter 13. Good luck.

Here's the link:

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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