How much debt do you have to have before you qualify for bankruptcy?
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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
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 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: http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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