How Much Debt Do I Need to File Bankruptcy? - Episode 419

This is a question I get quite often - "How much debt do I need to have in order to file bankruptcy?" The answer might surprise you - it depends! Are you self-employed? Have you had a drop in income? What type of debt do you have? Business debt? Medical? IRS? Typically, our answer is that you need to have more debt than you can repay over a reasonable period of time.  So someone with $30,000 in debt who makes $50,000 per year may be a good candidate for bankruptcy. Whereas someone with $100,000 in debt who makes $1 million per year may be a bad candidate for bankruptcy. Today's discussion stems from a conversation George had with a potential client. This person bought a new car for $25,000, with payments of $725 per month on a 5-year loan at 20% interest! Let us know if you enjoy this episode and, if so, please share it with your friends! Please also visit our sponsor, Sam Cohen of Attorneys First Insurance for Attorneys and Title Companies looking to get a quote on Errors & Ommissions (malpractice) Insurance coverage. www.AttorneysFirst.com.  Or, you can support the show by visiting our Patreon page: https://www.patreon.com/crushingDebt  To contact George Curbelo, you can email him at [email protected] or follow his Tiktok channel - https://www.tiktok.com/@curbelofinancialcoach  To contact Shawn Yesner, you can email him at [email protected] or visit www.YesnerLaw.com.