February 13, 2010
How much debt would it take for you personally make the decision to file bankruptcy?
dee b asked:
I know bankruptcy should be a last resort but some people have different personal limits. I would like to know your personal answer.
I know bankruptcy should be a last resort but some people have different personal limits. I would like to know your personal answer.
What’s the least amount of debt it would take for you to make the decision to file bankruptcy? And what is your annual income if you don’t mind?
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Comments on How much debt would it take for you personally make the decision to file bankruptcy?
one years pay.
Our lawyer said $20,000. But it varies with different lawyers!! Think about it very carefully its a life changing decision! BTW my annual income is $45,000.
Our annual income is modest, and I would need total debt to equal a years income, not counting a home’s mortgage as I count that as positive debt. A car payment doesn’t factor as we save out money and pay cash to get the best deal. The closest we come to the car payment is the savings we put away till we find a good deal.
Bankruptcy is a math issue and not really about personal limits .
The general rule is when your debts exceed your income (ability to pay ) ,
It is bankruptcy time .
( usually happens after job lay off or major medical issue )
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I would have to say seven to ten times my annual salary, depending on if my job is stable or not.
so if I make like 30k a year, that would be somewhere between 210k and 300k.
I figure if I make my bed I should lay in it.
It depends on how much you are in debt. If you cannot pay off the bills like make monthly payments and it is becoming overwhelming to your life and you have constant callers, then you should go and talk to a lawyer for advice.
If you are not that far in debt, but just cannot afford this try Chapter 13 where they work everything is together and go from there.
Chapter 7 Bankruptcy is tricky now since that law passed to prevent credit cards to be provided into Chapter 7. Most lawyers now want to get you into Chapter 13 to help you pay off your debt, and when it is paid off it leaves your credit report and you then get to keep all the items like your car, house, furniture (if on credit) and other items that can be taken away.
things are different now – you can’t get rid of credit card debt like you could a few yrs ago. when I declared bankruptcy 6 yrs ago, I had been separated 3 yrs, was unemployed had a car repo’d and lots of credit card debt, plus child support pmts to make – I think I had over 30k in total debts and was only working temp jobs between downsizings. I was living in a 350/mo apt and had a beater car with over 120k miles on it that I had to buy from one of those places that finance the cars themselves and you pay weekly. every person’s situation is different
There is no number possible. The ONLY way I would consider bankruptcy is if I was in such bad shape my creditors filed for me.
Hi,
I used “Credit Solutions” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here: