Filing Personal Bankruptcy Help

When I was a kid my Grandad used to tell me that if I ate my Lima Beans (Yuck!) they would put hair on my chest! I believed that myth, after all, my Grandad was a good source of information and he could bend a spoon just by looking at it! As you get older though, you learn that if you rely on unchecked myths you can really take a beating in life.

A great number of my Orlando bankruptcy clients have heard a widespread myth, and consequently share common questions. Many will ask at their first meeting with me, when they come in for their free evaluation: “How much debt do you have to have to qualify for bankruptcy? Will I qualify?”

In a recent blog by Douglas Jacobs, a California bankruptcy lawyer, the question of “Do I qualify to File for Bankruptcy?” is answered with a simple “Yes”. I agree, just about anyone will qualify to file for some type of bankruptcy. I think the better question is “should I file for bankruptcy?” and that can only be answered after a bankruptcy lawyer evaluates your overall financial situation.

When filing a Chapter 7 bankruptcy, the legal system does not put restrictions on the amount of debt you can owe to your creditors. So, when determining whether a person qualifies to file a Chapter 7 bankruptcy, how much or how little that person owes to their creditors is not relevant. However, there are limitations on the amount of debt you can have when you file a Chapter 13 bankruptcy, but it is not a question of whether you owe enough, but whether you owe too much.

According to the current bankruptcy code, a Debtor who files for Chapter 13 bankruptcy cannot have debts which exceed the following limitations: the total amount owed on unsecured debts, like credit cards, medical bills, and signature loans cannot be more than $360,475, and the total amount owed on secured debts, like home loans and car loans, may not be over $1,081,400. As an Orlando bankruptcy lawyer, I am familiar with the Orlando Chapter 13 trustee’s policy of filing a Motion to Dismiss if a Debtor exceeds these debt limitations. The Chapter 13 trustee here in Orlando reviews each case thoroughly to ensure the debt limits are not exceeded and will file a Motion to Dismiss if your debts are over the limit.

As an Orlando bankruptcy lawyer, I believe the myth about having to have a certain amount of debt to file for bankruptcy is one of the most common bankruptcy myths out there. It is amazing how many myths there are when it comes to filing for bankruptcy, and since most of them have no factual basis, it is hard to say where they came from.

With the knowledge you’ve gained, you now know that you will probably be able to file some type of bankruptcy. Your next step should be to contact an experienced bankruptcy lawyer to review your financial situation. This myth, and many others you may have heard about bankruptcy can be put to rest by a knowledgeable bankruptcy lawyer.

If you are considering filing for bankruptcy, make sure you hire an experienced bankruptcy lawyer to work for you. Do you have more questions about filing for bankruptcy before you take the plunge? Check out K. Hunter Goff’s FREE eCourse.

Related posts:

1. Your 2nd Mortgage May Be Eliminated In A Chapter 13 Bankruptcy Filing
2. How To File Chapter 7 Bankruptcy – Understanding The Process
3. If I file Bankruptcy, do I have to pay my taxes?
4. Certain Conditions Must Be Met To File Chapter 13 Bankruptcy
5. The Reason Why You Should File Bankruptcy
6. Can A County, State Or City Government File For Bankruptcy
7. Can You File Taxes Owed With Bankruptcy?
8. What Makes A Person File For Bankruptcy?
9. I’m A Massachusetts Resident, Do I Need An Attorney To File For Bankruptcy?
10. Do You Need To File Personal Bankruptcy