Is there a minimum amount of debt required to file for Chapter 7 Bankruptcy?

Yes, there is a minimum amount of debt required to file for Chapter 7 Bankruptcy in California. It’s important to note that the minimum amount of debt required is not a fixed number; instead, it is based on the income of the individual filing for bankruptcy. According to federal law, if an individual’s income is below the median income for the same household size in their state, then they can qualify for Chapter 7 Bankruptcy without having to pass a “means test.” If the individual’s income is above the median for their state, then they must pass a “means test” in order to qualify for Chapter 7 Bankruptcy. The means test takes into account the individual’s income level, expenses, and amount of debt. If the individual is able to pass the means test, they can proceed with filing for Chapter 7 Bankruptcy. It’s important to note that even if an individual doesn’t meet the minimum amount of debt required to file for Chapter 7 Bankruptcy, they may still be able to file for Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is a repayment plan that allows individuals to pay off their debts over a three to five year period. No matter what the individual decides, it is important to speak to a qualified bankruptcy attorney to discuss their options. An attorney can help an individual understand their situation and determine the best course of action for them.

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Is there a minimum amount of debt required to file for Chapter 7 Bankruptcy?

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