Filing bankruptcy with or without your spouse affects the protection from creditors each of you receives, and also affects whether you file under Chapter 7 or 13.
Bankruptcy law allows married couples to file bankruptcy separately or together. That option comes with consequences, which can also effect whether you file under Chapter 7 or 13.
Bankruptcy can protect your car or truck. Both Chapter 7 and 13 can, but which do you need?
Bankruptcy protects your home. Both Chapter 7 and 13 do so, but which is better for you?
Simplistic but often true: Chapter 7 deals better with simpler debts, while Chapter 13 with more complicated debts. What ARE more complicated debts?
Chapter 7 deals with some debts better than does Chapter 13. But Chapter 13 deals with some other debts better than Chapter 7. So what kind of debts do you have?
In Chapter 13 the trustee is a gate-keeper, overseer, and payment distributor. Quite different than in Chapter 7.
In bankruptcy you hear a lot about “the trustee.” What does this person do, in a “straight” Chapter 7 case, and in an “adjustment of debts” Chapter 13 one?
Chapter 7 often protects you from creditors well enough. But if need be, Chapter 13 protects you longer.
If your business has failed or is about to, it does NOT likely need a bankruptcy. But YOU personally might.
Question #1 for cleaning up financially after a failed business: can the business file a bankruptcy without you? Question #2: should it?
It sure helps in understanding the two main bankruptcy options if you know the cast of characters in each one.
In deciding between Chapter 7 and 13, get this question out of the way right away: “Can I keep everything I own if I file a Chapter 7 case?”