Clients who come in to Steidl and Steinberg with debt in tow will often say, "I know this doesn’t seem like a lot of debt compared to most of the clients you see.” The funny thing is I hear it from people with anywhere between $8,000 and $30,000 in debt. Or sometimes more. But what is the minimum amount of debt you are required to have in order to consider filing for bankruptcy?
The answer? There is no minimum.
No Minimum Debt Requirement
The reason there is no debt requirement is because debt affects people in different ways. $8,000 of debt for one person can be just as devastating as $75,000 for another. Some of our clients are on fixed incomes. One person may be receiving $900 per month on Social Security, another may be getting $1,700 per month. Another may receive $2,200 per month from a pension.
For the person collecting $900 per month, making payments on an $8,000 debt is a severe hardship and could be near impossible. Rent, utilities, food, and transportation expenses will eat up that money in no time For someone who brings in $3,900 per month, having to make $900 per month payments on credit cards could also be a struggle especially after mortgage, car payments and repairs, food for the family, additional utilities, and pet expenses.
Don’t compare your debt with someone else’s. Everyone’s circumstances are different. Allow us to thoroughly review your income and expenses and determine which alternatives could be suited for you.