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

In North Carolina, there is no minimum amount of debt required in order to file for Chapter 7 Bankruptcy. Any individual or business may file for bankruptcy in the state, regardless of the amount of their debt. However, the individual or business must meet certain criteria in order to qualify for filing. The primary criterion is that the individual has unsecured debts that cannot be repaid within a reasonable period of time. Unsecured debts are those for which the creditor does not have a claim against collateral such as a house or car. Examples include medical bills, credit card bills, and personal loans. Individuals must also pass the “means test” in order to qualify for filing. This test compares the individual’s average income for the previous six months to the median income for a similar size family in the state. If the individual’s income is higher than the median, the individual may not qualify for filing. Finally, individuals must also complete a credit counseling course prior to filing. This course is designed to educate the individual about possible alternatives to filing for bankruptcy and other financial management techniques. In summary, North Carolina does not have a minimum amount of debt required to file for Chapter 7 Bankruptcy. However, all other criteria must be met in order to qualify for filing.

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

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