No, it is not necessary that you have accrued a certain amount of debt before filing for bankruptcy. Some people have tens of thousands of dollars in credit card debt, several more thousand in medical bills, and a few hundred in payday loans. Of course, that doesn’t necessarily mean that the debt levels have to reach that point before you file a Missouri bankruptcy. Many people recognize ‘the writing on the wall’ before anything too terrible occurs.
In the kind of economy in which we live, there is an enormous incentive for people to take out loans and/or credit cards. This is done primarily in an attempt to provide basic needs for their family (food, clothing, medicine, etc.) But of course, such debt can get out of hand, especially if your work hours are reduced, or your pay is cut, or you lose your job altogether. Once the bills become delinquent, the creditors start calling (and the stress levels go even higher).
Having said that, if the overall debt that you owe to your creditors is $3,000 or less, it is probably a good idea to see if a settlement can’t be drawn up, and pay the creditors a lesser amount than you actually owe in one lump sum (instead of filing for bankruptcy). Of course, if such a settlement is reached, the creditor will most likely want the lump sum all at once (and not broken up into smaller payments over time).
In the end, a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy can eliminate a great deal of stress and anxiety. It will stop creditors from calling and harassing you; it will prevent any type of law suit being filed against you for the debts; it will end any garnishment against your wages, or levy imposed against your bank account; and it will put you back on the road toward regaining your financial health.
The St. Louis bankruptcy lawyers at Brinkman & Alter, LLC have been assisting people with this process for over 10 years. We have successfully eliminated hundreds of millions in debt, and helped many individuals get to the fresh start / clean slate that they deserve. All our phone conversations and office consultations are free of charge.