Compare the types of voluntary and involuntary bankruptcy and the implications of each.

Comparison should include

• the major causes of personal bankruptcy, such as small-business failure, impulse or emotional spending, failure to plan and budget, illness or injury, external factors (e.g., pandemic)
• evaluation of the terms of voluntary and involuntary bankruptcy and the effect each has on an individual’s financial future
• explanation of the advantages and disadvantages of bankruptcy
• assessment of the need for legal advice in bankruptcy cases
• identification of bankruptcy laws and their implications for personal finance
• identifying what is not dismissed in bankruptcy (e.g., student loans, child support, taxes).
• defining the most common chapters of bankruptcy
  • Chapter 7—liquidation of assets to pay debts, does not involve the filing of a plan of repayment
  • Chapter 13—reorganization bankruptcy, includes a court ordered plan to repay debt in three to five years
  • Chapter 11—business reorganization bankruptcy; if a business goes bankrupt, secured creditors get paid first (i.e., before employees).