How Much Do You Have To Be In Debt To File Chapter 7 Bankruptcy

File for Bankruptcy How Much Do You Have To Be In Debt To File Chapter 7 Bankruptcy

How Much Do You Have To Be In Debt To File Chapter 7 Bankruptcy

Making the decision to file for bankruptcy isn't easy, but sometimes it is the right call. And right now, you're wondering how much do you have to be in debt to file Chapter 7

To help you navigate the bankruptcy process and determine whether Chapter 7 is right for you, DoNotPay is going to answer some of the most frequently asked questions about Chapter 7 bankruptcy today. Then, DoNotPay is going to walk you through how you can use DoNotPay to file on your behalf quickly, easily, and successfully.

How Much Do You Have To Be In Debt To File Chapter 7 Bankruptcy Yourself? 

There is no minimum debt you must have to file Chapter 7 bankruptcy yourself. However, to qualify to file for Chapter 7, you must pass a means test. The means test looks at your income and expenses over the past six months, as well as your secured and unsecured debt, to determine whether your disposable income is greater or less than the state's median income.

How Much Does It Cost To File Bankruptcy?

How much does it cost to file bankruptcy is another commonly asked bankruptcy question. Typically, you need to pay a $15 trustee surcharge, $245 case filing fee, and $75 miscellaneous administrative fee. If you can't afford to pay $335, you can pay in four installments within four months of filing.

Put another way, you can pay $83.75 per month for four months following the date you filed your petition. In some cases, however, the last payment can be made six months after the petition was filed. In other words, you would only need to save up $55.83 per month. If you can't afford to come up with $55.83 per month for six months and your income is under 1.5 times the poverty level, your responsibility to pay to file may be waived.

How to File for Chapter 7 Bankruptcy Yourself

To file Chapter 7 bankruptcy, you must go to bankruptcy court and file a petition. But that’s only the beginning of your paperwork.

Paperwork to be filed for a Chapter 7 Bankruptcy
  1. Balance sheet (schedules of assets and liabilities)
  2. Income/Profit & loss statement (schedule of current income and expenses)
  3. Statement of financial affairs
  4. Schedule of unexpired leases and executory contracts
  5. Submit a copy of the most recent tax return

Also, you need to prove that you have been through debt counseling by providing a certificate and submitting a copy of the debt repayment plan you made through credit counseling. Other documents you need to submit to bankruptcy court include:

  • Proof of payment from employers received in the two months prior to filing
  • Statement of anticipated changes to net income after filing
  • Record of interest in state or federal qualified tuition or education accounts

Next Steps To File Chapter 7 Bankruptcy If You Can't Do It Yourself

If you are having trouble filing for Chapter 7 bankruptcy yourself, you can try to find and hire a trustworthy local lawyer. That said, most lawyers will not take your case if you have fewer than $10,000 in dischargeable debt.

How To File For Chapter 7 Bankruptcy With The Help Of DoNotPay

While most lawyers won't take your bankruptcy case if it is deemed "too small," DoNotPay can help you file for bankruptcy in just five easy steps:

  1. Search for File for Bankruptcy on DoNotPay.


  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.


  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.


  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.


  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.


That's all you have to do! Just make sure that you attend your meeting with your bankruptcy trustee and take your post-filing bankruptcy debtors course. 

What Else DoNotPay Can Help You With

If you're wondering how much debt do I need to file Chapter 7, there is no better resource than DoNotPay. The app is also the perfect resource for other bankruptcy concerns, including:

Try it today!

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