When to start a bankruptcy?

March 18th, 2009 by Questions

I lost my job early February and just started getting EI. I`m having no luck finding a job. I borrowed some money off a family member and I`ve been using that to pay on my credit card bills, but the money that is left won`t even cover all of my April credit card payments and I`m just paying the minimum.

Is it correct that I have to owe $1000 to the credit card companies before I can file for bankruptcy? If so I would have to wait out 2.5 months before I could file. Is there any point in even contacting the companies before it were to get to this.. if indeed it is $1000 owing?

I`m one of those people who found myself in the big hole I dug, a couple paychecks away from a financial disaster.
I`ve looked into all the other options on here and at this point cannot afford to do anything but file for bankruptcy.

Thank-you for your time.

Posted from: British Columbia

Questions

One Response to “When to start a bankruptcy?”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

To be eligible to file bankruptcy you have to owe at least $1000. This is not to every individual creditor but to all of your creditors. Additionally, if you owe less than $1000 I wouldn’t recommend filing for bankruptcy as the minimum cost is likely greater than the amount you owe (the minimum often ranges from around $1600 to $2000 depending on the circumstances).

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)