| Filing Bankruptcy? How Much Do You Have To Owe? |
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| Written by K. Hunter Goff |
| Thursday, 02 September 2010 18:34 |
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As a child, I HATED Lima beans. YUCK! But, I believed my Grandpa when he told me they would put hair on my chest. My Grandpa was a great source of information. He could even bend a spoon just by looking at it! So, I believed the Lima bean myth. However, as a grew older, I learned that relying on unchecked myths can lead to bad things in life.
As a child, I HATED Lima beans. YUCK! But, I believed my Grandpa when he told me they would put hair on my chest. My Grandpa was a great source of information. He could even bend a spoon just by looking at it! So, I believed the Lima bean myth. However, as a grew older, I learned that relying on unchecked myths can lead to bad things in life.  A common myth is the source of a popular question I answer frequently. When they come to my office for their first meeting, to receive their free evaluation, I am regularly asked by my Orlando bankruptcy clients is this: "Are my debts high enough to file for bankruptcy?" Douglas Jacobs, a California bankruptcy attorney, brings up the question of "Do I qualify to File for Bankruptcy?" in a recent blog. He answers this question with a simple "Yes". I concur, almost everyone qualifies to file bankruptcy of some type. The more pertinent question, in my opinion: "Should I file for bankruptcy?" Only after an experienced bankruptcy lawyer evaluates your complete financial situation, will this question will be answered. A Chapter 13 bankruptcy puts limitations on the amount of money a person can owe and still file for that type of bankruptcy, but in Chapter 7 bankruptcy there are no limitations on debt you can owe when filing this type of bankruptcy. Therefore, how much or how little you may be in debt to your creditors does not come in to question when considering whether you qualify to file for Chapter 7 bankruptcy. The Chapter 13 trustee in Orlando scrutinizes each case to determine if someone's debts exceed the limitations put forth in the bankruptcy code. As an Orlando bankruptcy lawyer, I know the Chapter 13 trustee file a Motion to Dismiss when a person's debt is over the limitations. The bankruptcy code currently states you cannot owe more than $360,475 in debts to unsecured creditors, like credit cards, medical bills, signature loans, etc. When it comes to secured debt, things like home loans and car loans, the Chapter 13 debt limit is $1,081,400. So in Orlando, if you owe more than these limits, you may see a Motion to Dismiss filed in your Chapter 13 case. As an Orlando bankruptcy lawyer, I believe the myth about having to have a certain amount of debt to file for bankruptcy is one of the most common bankruptcy myths out there. It is amazing how many myths there are when it comes to filing for bankruptcy, and since most of them have no factual basis, it is hard to say where they came from. Since you are now aware that you will most likely meet the requirements to file some type of bankruptcy, I recommend that you contact an experienced bankruptcy lawyer to talk about your situation. An experienced bankruptcy lawyer should be able to dispel this, and any other myths you've come across when it comes to filing for bankruptcy. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Do you have questions about filing for bankruptcy? Check out K. Hunter Goff's FREE eCourse. Hire an experienced bankruptcy lawyer to work for you. |