Tonight we went into our lawyers office to finalize the paperwork for filing and got great news! Because virtually all of the debt is due to our business, AND because chapter 13 has some limits on the amount of unsecured debt we qualify for a chapter 7. This makes us happy! With a chapter 13 bankruptcy, you are in a repayment plan up to 5 years based on the amount of debt. We we have absolutely no additional income, so I didn’t think there would be a way to repay anyway. Whew!
We still have to do the means test, although it doesn’t really apply due to our situation being “forced” into a chapter 7. The court and appointed trustee want to see the results. From what I understand the court tries to force you into a chapter 13 so creditors can get some of their money back, but it won’t apply in our situation.
We didn’t have time to complete the test tonight, but will go back next week and get it completed to be able to file. Finally, it seems like forever since we started the process. Now I’ve got to get some info from the NOLO chapter 7 book
Tags: chapter 13, chapter 7, personal bankruptcy