A lot of Americans today are finding themselves in very difficult financial situations. With the fickle economy, it has been hard to predict the future and some of us have fallen deep into debt. The question on most minds is how much debt to file bankruptcy is needed. The best way to have that and other questions answered would be so hire a bankruptcy lawyer. The answers may vary from state to state, so if you are living in California you will want to hire a California bankruptcy lawyer.

Unless you are a business owner with business debt, you will not likely need any chapter 11 bankruptcy information. When it comes to personal finances, you will likely try to file chapter 7 bankruptcy or you will be filing chapter 13 bankruptcy. Again, your lawyer will best be able to tell you how much debt to file bankruptcy is needed under each chapter of the law.

Generally, under chapter 7 bankruptcy laws you will have to qualify through a means test. Your lawyer will help you fill out the paperwork to determine how much debt to file bankruptcy under chapter 7 is needed in your individual case. Candidates that usually qualify are struggling to pay their monthly bills as well as past debt. Chapter 7 is also a good option if you do not own many assets. When you qualify for chapter 7, your assets will be liquidated and put toward your debt. Once that is completed, your unsecured debt will be discharged.

If you do not qualify to file for Chapter 7 bankruptcy, it is not time to give up yet. Chapter 13 bankruptcy laws work a little differently, and are set up for people in slightly different financial situations. If you are paying most of your monthly bills regularly, but are struggling paying past debt, you may qualify for chapter 13 bankruptcy. Instead of liquidating your assets, the court will reorganize your debt. You will pay a reasonable monthly fee to the court trustee until the debt is cleared. This usually takes between 3 and 5 years.

The benefits of filing bankruptcy under either chapter are clear. You will no longer be getting nasty phone calls and letters from creditors, you will no longer have mounds and mounds of bills you cannot pay, and you will be able to begin rebuilding your credit. Do not discount your options until you ask a lawyer how much debt to file bankruptcy is needed. There is likely a solution to make your financial life easier. With a small upfront legal fee, you could be on the road to financial recovery in no time. See this reference for more.