There is no specific sum that one needs to owe to file for bankruptcy.

Rather,  the need for filing will depend on the particular circumstances that a person confronts. For example, a surgeon with $40,000 of credit card debt may not need to file. An elderly person with medical needs, huge monthly utility bills and a particular sensitivity to collection calls having $8,000 of credit card debts may need to file.

Some of the many factors to consider before filing a bankruptcy petition are:

1.   Your ability to pay debts as they become due, based on current household income and expenses.

2.   Whether the amount that you owe can be paid back within a reasonable period of time without adversely impacting your lifestyle, measured by reasonable and necessary expenses.

3.   Whether there is an immediate need for you to stop creditor action, such as collection efforts, levies, garnishments, foreclosures, repossessions or telephone calls.

4.   Whether you are particularly sensitive to collection calls.

5.   Whether you have a need to cure a particular debt (e.g., a mortgage arrearage) through a court-ordered plan, without a particular concern for discharging debts.

6.   Whether you or a household family member has incurred a permanent job loss or decline in income.

7.   Whether you or household family member has incurred an illness or a family member upon whom you relied on for support has died.

8.   Whether you are engaged in a divorce proceeding.

9.   Whether you or household family member has a need to devote funds to a particular debt or debts, such a medical debts, tax debts, child support or student loans.

10.  The nature of the your debts (e.g., child support, student loans, taxes, credit cards, mortgage or business debts).

11.   Your personal view toward a bankruptcy filing.

If you wish to discuss the content of this post further, please feel free call me at (570) 823-9400 or write to me at