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Can you file bankruptcy only when you're completely broke?

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Usually, people file bankruptcy when they’re broke and can’t pay off creditors on their own. You’ll be eligible for bankruptcy when you’re in financial distress and can’t pay off debts in any way.

It is not that you’ve to be completely broke to qualify for bankruptcy. Rather, if you’re too broke, then there can be a big problem. Bankruptcy involves certain costs. If you don’t have a penny to pay those costs, then you’d would be pushed towards permanent insolvency. Your debts won’t be discharged and your credit score will be permanently dinged.

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Last Updated on: Fri, 8 Jun 2018