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.
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
“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.
The “automatic stay” stops creditors from chasing you. A recently dismissed bankruptcy case or two can threaten this crucial benefit.
It’s not easy to write off student loans, but the right timing can help. Chapter 13 gives you more power over the timing.
Whether you can write off your student loan could very much depend on WHEN you ask the court for a determination of “undue hardship.”
The discharge–write-off–of student loans may be made more likely with smart timing.
If you fall behind on support payments, it MIGHT make sense to file bankruptcy right when you can afford to begin making them again.
Financial wisdom says you should set aside money for 3-to-6 months of living expenses. You can do this even before filing bankruptcy.
Bankruptcy focuses (for most purposes) on assets you own as of the moment of filing. So consider using up unprotected assets before then.
One strategy to prevent the loss of asset value in bankruptcy is through very cautious conversion of unprotected assets into protected ones.
By filing your bankruptcy after applying appropriate asset management strategies, you can save your assets and pay the right creditors.