At the risk of sounding like a lawyer, it depends. Sometimes I am asked, “I have $10,000 in debt (or $30,000 or $80,000 or whatever). Can I file? And should I file?” As to the first question, there is no minimum amount of debt required to file bankruptcy. If you are otherwise qualified, you can file bankruptcy.

The second question as to whether you should file is more nuanced. Just because you can file does not automatically mean it’s a good idea. I have clients with little debt that choose to file bankruptcy for strategic reasons or because their income level necessitates it. And I meet with people that have over $100,000 in credit card debt, taxes or some other albatross around the neck, but do not file for various reasons; maybe they actually have the income to pay it off or have too much in unprotected assets.

And I meet with clients who could go either way. They can file and get a good result, or maybe they can pay back the debt. It then it depends on whether they can pay back the debt in a few years, or whether it will take 33 years of minimum payments and depends on the short term and long term goals. The decision on whether to file is based on a comprehensive analysis. Sometimes bankruptcy is a silver bullet. Sometimes it’s not.

For those in financial distress and wondering what to do, the worst case scenario is that you gather information. Talk to a financial advisor, a bankruptcy attorney and any other professionals that may be relevant to your situation. At the very least, you want to make an informed decision.

Then you can decide whether filing with $20,000 or $200,000 in debt makes sense.