Best Bankruptcy Lawyers in Pembroke Pines, FL

How Much Debt Makes You Eligible for a Bankruptcy Filing? Contemplating filing for bankruptcy? Many people consider the option but get bogged down with logistical questions, the first of which is whether there is a minimum amount of debt needed for an individual to file for bankruptcy. Rest assured, there is no minimum amount of debt relief needed for a bankruptcy filing. However, factors that are taken into consideration include, but are not limited to: • The time period during which the creditor is trying to collect the debt • Whether the debtor has the funds/ assets the creditor can go after • Whether the debtor is in their discharge period. Creditors only have a limited period of time during which they can file a court action for the debt owed to them. This timeframe typically ranges from four years for an oral contract to five years for a written contract in the state of Florida. While the initial outreach might be from the creditor themselves, they eventually sell the debt to a debt collection agency, who may eventually choose to sue for damages. A creditor opting to file a court filing should be wary about whether the debtor has the funds and/ or assets from which they can recover their debt. Typically, creditors do not sue for debts under $5000 because, in the event that the debtor does not have such funds or assets, they would be given a judgement-proof debtor status, meaning they do not have any liquidity which the creditor can go after.