When considering bankruptcy, aside from discharging your debts, you should be very careful and follow these two fundamental principles: honesty and your ability to repay your debts.
First, honesty. It is a crime to hide assets and fail to disclose assets to the bankruptcy court. When you arrive in court, there are large signs posted on the walls pointing out the penalties that range from 5 years imprisonment to fines up to $250,000. There is an entire floor in the St. Louis court house whose sole job is to look for these kinds of activities and report it to the court and the FBI. Obviously, it isn't worth the risk go down that road.
Second, paying as much of your debts back as possible. Under the new law, there is now an income formula that determines whether you are eligible for Chapter 7 (a fresh start) and how much your unsecured creditors receive if you are required to file chapter 13.
This means that you do not get to choose what type of bankruptcy to file. Our consultations are free, so call one of our offices to make and appointment to discuss your case with either Mr. Ringling or Mr. Daher if you are in financial distress.