How Much Debt Constitutes Filing for Bankruptcy?

You might be in a lot of debt, but you might not be sure of whether or not you have enough debt to file bankruptcy. Talking to a Brooklyn bankruptcy lawyer can help you get a better idea of whether or not bankruptcy is right for you, based off of the amount of debt that you have, the type of debt that you have, and the other factors of your situation. However, in the meantime, this quick guide can help you learn a little more.

What is the Minimum Amount of Debt You Need to File Bankruptcy?

If you are wondering whether or not you are required to have a certain minimum amount of debt in order to file bankruptcy, you should know that this is not the case. However, if you only have a minimal amount of debt, you might find that there are better alternatives to filing bankruptcy.

Of course, what one person considers to be a large amount of debt might be a low amount of debt to someone else. Basically, if your debt is high enough that you are struggling to pay it, there is a good chance that you are a good candidate for filing bankruptcy.

What are Your Alternatives to Bankruptcy?

Bankruptcy is a useful financial tool for many people, and there is a chance that it’s right choice for you, too. However, if possible, you may want to look into some of your alternatives.

For example, you might be able to work with each of your creditors to work out some type of payment plan or settlement that will work for you. Some of your creditors might be willing to settle your debt for a fraction of what you owe. Others might be willing to lower your monthly payments or defer some of your payments so that you can get back on track.

If working with your creditors on your own is not an option, you can always look into debt consolidation or credit counseling. Then, you can work with professionals who can help you get your debt under control.

If you aren’t sure of whether one of these alternatives will work well for you, you should consider meeting with a Brooklyn bankruptcy attorney. There are good bankruptcy lawyers in Brooklyn who can talk to you about bankruptcy and your alternatives and who can help you choose an option that will help you get your financial life back on track.

What Will Be the Outcome of Your Bankruptcy?

What will happen after you file bankruptcy will depend on the type of bankruptcy filing that you choose.

If you choose Chapter 7 bankruptcy, then you might lose some of your assets. However, many of your debts will be wiped away clean, allowing you to enjoy a fresh start.

If you choose Chapter 13 bankruptcy, then you might be able to keep some of your assets, but you will also be required to pay some of your debts. These debts will be paid through a payment plan. The debt that is not paid through your payment plan might be wiped away.

Talking to bankruptcy attorneys in Brooklyn about the different types of bankruptcy filings is wise so that you can make the right decision. Luckily, the attorneys from a good bankruptcy law firm Brooklyn should be more than happy with answering your questions about the different types of bankruptcy filings and assisting you with making the right choice.

Making the decision to file bankruptcy is a major one, and it’s not something that you should decide or handle on your own. Instead, you should look for a good Brooklyn bankruptcy law firm. Then, you can work with a team of bankruptcy lawyers who can help you understand more about bankruptcy law, who can help you determine whether or not bankruptcy is right for you, and who can assist you with filing bankruptcy, if it turns out to be your best option.