Is there a minimum amount of debt to file bankruptcy?

Is there a minimum amount of debt to file bankruptcy?

No. Bankruptcy can eliminate any amount of debt. Whether it is worthwhile to file bankruptcy with the amount of debt you owe is the question. The analysis to determine wether to file bankruptcy should be which of the following options will better you:

1. To have a bankruptcy and no debt; or

2. To have debt and no bankruptcy.

The answer sometimes is not simple. Typically when people lose the ability to afford their debt, bankruptcy and the discharge of their debt is the best bet. Though bankruptcy is a negative on your credit, it is almost always a better option then carrying debt that cannot be paid. By eliminating your debt, your debt-to-income ratio is instantly improved which, understandably, instantly improves your credit.

Part of the equation, too, must be the mental aspect of debt. clearing your debt can offer peace of mind and the prospect of not living under debt. Never underestimate what debt–or its absence–can do to your well-being!