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How Much Debt Do I Have to Be In To File for Bankruptcy?

How Much Debt Do I Have to Be In To File for Bankruptcy?

For many people, bankruptcy is a very puzzling and complicated concept to understand.  There doesn’t seem to be a road map or easy guide to follow when navigating through bankruptcy proceedings.  There is also a lot of misinformation that can confuse someone who is unfamiliar with how bankruptcy works.  That is why you need the help of the bankruptcy attorneys at Nikolaus & Hohenadel, LLP Attorneys at Law. 

Our law firm has been helping clients in Lancaster, PA and the surrounding areas since 1972.

A common question that our attorneys are often asked in regards to bankruptcy is, “How much debt do I have to have to be in to file for bankruptcy?” 

Many people think that there is some sort of minimum amount of debt you have to accumulate before you are allowed to file for bankruptcy.  The simple fact of the matter is that there is no specific amount of debt you have to be in to file for bankruptcy.  There are certain qualifiers that make you eligible for bankruptcy filing, but having a minimum amount of debt is not one of them.  Questions like these can be easily misinterpreted or misconstrued, so having the aid of a team of bankruptcy attorneys can clear up the mystery behind questions like this one, and many other questions.

Another frequent misconception is that filing for bankruptcy will “wipe out” all of your debt.  In most cases, filing for bankruptcy will discharge most of your debt.  There are exceptions to this rule, however, and these exceptions vary from state to state.  Knowing what can and can’t be discharged by filing for bankruptcy is important.  Nikolaus & Hohenadel, is a law firm that has a focus on bankruptcy and will guide you towards the best outcome.  Some examples of debts that cannot be discharged when filing for bankruptcy are: debts incurred from fraud, most debts owed from student loans or debts from child support.

A big concern that many people have when filing for bankruptcy is how it will affect them in the future.  One specific concern that some might worry about is whether or not securing services from utility companies is possible.  A public utility company, like the electric company, cannot refuse service or discontinue service to you as a customer simply because you have filed for bankruptcy.  That being said, it is possible that a utility company may require you to place a deposit on your account to acquire their services, if you were delinquent when you filed your bankruptcy.

Working with bankruptcy attorneys that know the ins and outs of bankruptcy can make a huge difference in your experience when filing for bankruptcy. 

Nikolaus & Hohenadel, LLP Attorneys at Law will make sure you have all of your questions answered and that you are given solutions to your bankruptcy problems that make sense for you.  Having served many clients in Lancaster, PA and the surrounding areas, our team has a singular goal of making sure you are taken care of. 

Make sure to contact us today to set up an appointment to discuss your future.