Chapter 7 does not have the fancy “co-debtor stay” of Chapter 13. But in the right circumstances it can still shield your co-signer better.
Good Reason to File Bankruptcy Now: To Write Off Some of Your Income Taxes and Arrange to Pay the Rest
If you owe taxes on more than one tax year, Chapter 7 may discharge the older year(s) so you can make low monthly payments on the rest
Good Reason to File Bankruptcy Now: To Avoid Having to Repeat “Credit Counseling”
“Credit counseling” is necessary before you can file a bankruptcy case. But it is only good for 180 days. Be sure to file before it expires.
Good Reason to Delay Filing Bankruptcy until Now: To Avoid Losing the “Automatic Stay”
The “automatic stay” stops creditors from chasing you. A recently dismissed bankruptcy case or two can threaten this crucial benefit.
Good Reason to Delay Filing Bankruptcy until Now: The Special Timing Advantages of Dealing with Your Student Loans Under Chapter 13
It’s not easy to write off student loans, but the right timing can help. Chapter 13 gives you more power over the timing.
Good Reason to Delay Filing Bankruptcy until Now: Good Timing to Discharge Your Student Loans Under Chapter 7
Whether you can write off your student loan could very much depend on WHEN you ask the court for a determination of “undue hardship.”
Good Reason to Delay Filing Bankruptcy until Now: To Qualify for Discharging Your Student Loans
The discharge–write-off–of student loans may be made more likely with smart timing.
Good Reason to Delay Filing Bankruptcy until Now: File Chapter 13 When You Can Afford to Pay Your Monthly Child/Spousal Support
If you fall behind on support payments, it MIGHT make sense to file bankruptcy right when you can afford to begin making them again.
Good Reason to Delay Bankruptcy until Now: Accumulate Exempt Assets
Financial wisdom says you should set aside money for 3-to-6 months of living expenses. You can do this even before filing bankruptcy.
Good Reason to Delay Bankruptcy until Now: Deleting Non-Exempt Assets
Bankruptcy focuses (for most purposes) on assets you own as of the moment of filing. So consider using up unprotected assets before then.
Good Reason to Delay Bankruptcy until Now: Time to Convert Non-Exempt Assets into Exempt Ones
One strategy to prevent the loss of asset value in bankruptcy is through very cautious conversion of unprotected assets into protected ones.
Good Reason to Delay Bankruptcy until Now: To Allow Time for “Pre-Bankruptcy Planning”
By filing your bankruptcy after applying appropriate asset management strategies, you can save your assets and pay the right creditors.