What Kind of Bankruptcy Should I File For?
2. Time – Individuals are only allowed to file for Chapter 7 bankruptcy once every eight years.
Chapter 13 – Debtor’s Court
This is another form of bankruptcy for individuals overwhelmed by debt. Chapter 13 is a method of debt consolidation/repaying your debts through debtor’s court. Unlike Chapter 7, you aren’t discharging your debts. As a general rule, individuals who file for Chapter 13 are trying to pay their debts back over the course of five years. In some cases, you may only have to pay back a portion of your debts before the rest is discharged. It all depends on your situation.
3. Debts – Certain debts cannot be discharged. If all your debts are due to taxes, student loans, or child support, filing for Chapter 7 will not help you because these debts cannot be discharged.
Bankruptcy is complicated, to put it mildly. There are a lot of rules about who can file for bankruptcy and what kind of debts bankruptcy can erase. Most people are familiar with three types of bankruptcy: Chapter 7, Chapter 13, and Chapter 11. Here’s a brief overview of what each of those terms really mean.
Chapter 11 – “Big” Business Reorganization
To put it simply, Chapter 11 is bankruptcy reserved for big businesses. Mom and pop shops can’t file for Chapter 11. If you are thinking about bankruptcy, it helps to know what kind of bankruptcy you can file for. Got more bankruptcy questions? Call 205.705.3590 and learn if filing for bankruptcy can help you get out of debt and enjoy a fresh start.
Why would someone file for Chapter 13 instead of Chapter 7 bankruptcy?
There are strict rules on who is allowed to file for Chapter 7 bankruptcy based on income, time, and the nature of your debts.
Chapter 7 – Personal Bankruptcy
When you file for Chapter 7 bankruptcy, you are trying to get rid of, or “discharge,” some or all of your debt. This bankruptcy is for individuals. The process is relatively quick and takes about three months.
1. Income – If you make “too much” money, you might not qualify for Chapter 7.
RECIPE:
Cacio e Pepe
Italian for “cheese and pepper,” cacio e pepe is like a refined version of mac and cheese. It’s crowd-pleasing enough to satisfy the pickiest eaters and refined enough to sate the foodies.
Ecclesiastes 7:9
INGREDIENTS:
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6 oz pasta, ideally spaghetti or bucatini 3 tbsp unsalted butter, cubed and divided 1 tsp freshly ground black pepper
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3/4 cup finely grated Parmesan cheese, ideally Parmigiano-Reggiano
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1/3 cup finely grated pecorino Kosher salt, for pasta water and to taste
“Don’t let your spirit rush to be angry, for anger abides in the heart of fools.”
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DIRECTIONS:
1. In a large pot, bring 3 quarts of salted water to a boil. Add pasta and cook, stopping 2 minutes short of desired doneness. Drain pasta, reserving 1/2 cup of pasta water. 2. In a large pan over medium heat, melt 2 tablespoons butter. Add pepper and cook until toasted and aromatic, about 1 minute. Add reserved pasta water and bring to a simmer. 3. Transfer pasta and remaining butter to pan and reduce heat to low. Add Parmesan cheese and cook until melted, tossing pasta throughout. Remove pan from heat and add pecorino, continuing to toss until cheese is melted and sauce coats pasta. 4. Transfer to bowls and serve.
Inspired by Bon Appetit
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Phone: 205.705.3590
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