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?”
If you qualify for both Chapter 7 and 13, look closely at how much you’d be helped by Chapter 13 before choosing Chapter 7 merely because it’s simpler.
Chapter 13 costs much more than Chapter 7, takes about 10 times as long, so you do a Chapter 7 if possible, right?
The most respected early commentator on the Constitution fills in some historical gaps about bankruptcy and leads it in a better direction.
Too much debt can disqualify you from filing under Chapter 13.
The amount of your income may not disqualify you from Chapter 7.
If you don’t qualify for either Chapter 7 or 13, do you have to do a very expensive Chapter 11 reorganization? Or could you still qualify after all?
“Straight” Chapter 7 bankruptcy can give some relief for dealing with your back and current income taxes, but Chapter 13 can help so much more.