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The actual amount varies from situation to situation, but the general rules used to consider claiming bankruptcy are summarized as follows:
* The amount owed to creditors must be greater than that held in marketable assets (e.g., bank accounts, car, 401k, etc.)
* The income (after taxes and required living expenses) of the debtor(s) does not cover the minimum amount of principal and interest necessary to pay off all debt in a "reasonable amount of time" (for non-primary real estate assets, people use seven to ten years)
* You have made a very strong attempt to reduce your living expenses to only the necessities
* You have been unable to negotiate a workout with one or all of your creditors
Bankruptcy is a last resort. You will keep your home (if you don't own it outright, if you do, you will end up having to get a mortgage to pay off creditors) and may keep a vehicle, but that is it. You will not be able to get credit for at least seven years following the event, making major life changes difficult (e.g., a new baby, marriage, school, etc.).
If you are considering bankruptcy, see a credit professional in order to be sure that bankruptcy is your only route to debt freedom.
What else can I help you with?
Is Debt Settlement easier than bankruptcy?
It depends on the amount you in your debt. If your debt is a large sum and figure, the best and most ideal thing would be to declare bankruptcy. If not debt settlement would be much easier.
Are you liable for debt cancelled in bankruptcy?
No you are not, If you deglared bankruptcy, that cancels your debt
How much debt can you have before filing for bankruptcy?
There's no maximum amount. If you can't make your payments you file bankruptcy.
What happens to a mortgage after a bankruptcy?
What happens to a mortgage after bankruptcy depends on whether or not the debt is reaffirmed. If the mortgage is reaffirmed the homeowner continues to pay it as if the bankruptcy had not been filed, since the debt has not been discharged. If the debt is not reaffirmed, what happens to the mortgage depends on the policies of the individual lender.
How much debt do you need to declare for bankruptcy?
UK. Bankruptcy £15,000 or more. If you have less than £15,000 worth of debt, sustainable under 15k for the duration of one year and meet certain criteria, you may qualify for a debt relief order, which is, in effect, a mini bankruptcy.
What happens when a creditor doesn't file a proof of claim in a bankruptcy case?
If it is not a secured debt it will be included in the bankruptcy discharge.
If you incur a debt after you file a bankruptcy can you claim it on the next petition?
Under the new bankruptcy rules, this would be hard to impossible to do.
Can you claim bankruptcy for medical debt?
Yes, but you must list all debts, not just medical debts.
Is a negotiable promissory note owed to a friend a priority claim when filing for bankruptcy?
No, it would be a nonpriority, unsecured debt.
Is Debt Settlement easier than bankruptcy?
It depends on the amount you in your debt. If your debt is a large sum and figure, the best and most ideal thing would be to declare bankruptcy. If not debt settlement would be much easier.
Can a creditor file an adversarial claim in bankruptcy court in a personal 7 bankruptcy for something that they contend occurred during a business bankruptcy 2 years previous. No claim was filed then.?
No, a creditor is required to file a claim if seeking payment, otherwise that claim is considered waived. So in this case. if there was no claim, then it was waived and the debt discharged. But even if it was filed, it would have been discharged in the business BK.
Are you liable for debt cancelled in bankruptcy?
No you are not, If you deglared bankruptcy, that cancels your debt
How much debt can you have before filing for bankruptcy?
There's no maximum amount. If you can't make your payments you file bankruptcy.
What happens to a mortgage after a bankruptcy?
What happens to a mortgage after bankruptcy depends on whether or not the debt is reaffirmed. If the mortgage is reaffirmed the homeowner continues to pay it as if the bankruptcy had not been filed, since the debt has not been discharged. If the debt is not reaffirmed, what happens to the mortgage depends on the policies of the individual lender.
How much debt do you need to declare for bankruptcy?
UK. Bankruptcy £15,000 or more. If you have less than £15,000 worth of debt, sustainable under 15k for the duration of one year and meet certain criteria, you may qualify for a debt relief order, which is, in effect, a mini bankruptcy.
Is recourse debt subject to discharge in bankruptcy?
Recourse debt can be subject to discharge in bankruptcy, but it depends on the specific circumstances of the bankruptcy case and the type of recourse debt involved.
How much debt should one have before filing for bankruptcy?
It would depend on the person as to how much debt one would have to have before filing for bankruptcy. Some people can have more debt than others and be ok with it, while others would feel the need to file.
