There’s no minimum debt to filing for bankruptcy in Memphis or nationwide. Bankruptcy does come with certain fees, however, so in theory a debt could be too small to be worth it.
In general, the lack of minimum debt protects people from being judged on an objective basis. People’s finances can vary according to each person’s individual situation: a small medical debt might not be difficult to pay if you have a steady job and sizable income; but if you just lost your job, even a small amount can become a huge burden very quickly.
Sometimes the debt is so minimal that it’s not in your best interest to file bankruptcy. Perhaps it’s barely more than the filing fee, or perhaps it can be better dealt with through budget changes or other strategies. Believe it or not, our Memphis bankruptcy lawyers don’t encourage bankruptcy for every client who comes to see us. We want to see you in a better position financially, and sometimes bankruptcy won’t get you there.
If you have questions about whether your debt is adequate to consider bankruptcy as an option, we’d be glad to talk with you at no charge. You can contact us online or call 901-327-2100 to reach us today.