Under North Carolina law, bankruptcy petitions have no minimum debt threshold. The paramount consideration is the petitioner’s demonstrable inability to satisfy their financial commitments rather than any prescribed monetary amount.
Folks generally have two main options when filing personal bankruptcy in NC. The first step is Chapter 7, which requires you to pass something called a means test. This type tends to work best if you’re dealing with a bunch of credit card or medical debt and aren’t bringing in much income.
The other option, Chapter 13, provides a structured repayment plan. It’s pretty handy if you’re getting a reliable paycheck and want to keep essentials like your house or car while getting your finances back on track.
Whereas the determination to initiate bankruptcy proceedings shall be predicated upon the totality of the debtor’s financial circumstances, including but not limited to income, assets, liabilities, and reasonable expectations of future ability to pay;
Look, at the end of the day, no magic number says, “Now you should file for bankruptcy.” Your best bet is probably sitting down with a bankruptcy lawyer who can look at your situation and help you figure out if it’s the right move for you.
