by Michael A. Cataldo, Esq.
American Bankruptcy Board Certified

Question: Do I have to have a certain amount of debt to file?

Answer: No. However, some situations may not warrant filing for bankruptcy.

If your financial situation is temporary, you may consider making arrangements with individual creditors for a change in payment amounts or a reduction in the total amount due. You can try to settle for a lump sum lesser amount.

If an individual has little in the way of property or money, filing bankruptcy may not be necessary, as the creditor may not be able to collect the debt. However, the creditor can still sue you and get a judgment against you, which could hinder you from purchasing real-estate property or getting a loan later one.

Next week’s question: Does my divorce decree protect me from creditors if my ex-spouse filed for bankruptcy?