You have asked more questions than the space allows me to answer.
Whether you should file bankruptcy with your spouse depends on whether he has debts he is liable for that would make including him in your bankruptcy worthwhile or not. Taking his name off of a credit card now will not remove him from liability that occurred in the past.
What Chapter bankruptcy you should file depends on how the numbers in your budget play out. If you have money left over after paying your essential living expenses, say $150 or more, you probably would have to file a Chapter 13. If less than $150 is left, then Chapter 7.
Your situation is sufficiently complex that you should be meeting with the best bankruptcy attorney in your community. You will never regret paying a few extra bucks to get the best legal advice.
Hope this perspective helps!
You have a very complicated situation. Unfortunately, it is probably not possible for you to get a worthwhile answer in this forum.
You should consult with a local bankruptcy lawyer experienced in business issues to get specific advice for your particular situation.
Please note that, while I am a lawyer, I am not your lawyer. This information is for general educational and informational purposes only, and is not legal advice. You should review your particular situation with a qualified lawyer of your choosing.
A business entity cannot file for Chapter 13. It can only file for Chapter 7 or 11. Unless the business really wants to reorganize, it should file for Chapter 7.
It is imperative that you consult with a bankruptcy attorney regarding your debts, liabilities and income. Not everyone qualifies for bankruptcy. and moreover, it might not be absolutely necessary.
A discharge will not be entered in a Chapter 7 case if the debtor is not an individual (i.e. the debtor is a business). In Chapter 11 cases, if the debtor is not an individual (such as an LLC), the debtor must be entitled to a discharge, and if so, a discharge order may be entered once the Chapter 11 Plan of Reorganization is confirmed.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
Counselor Chen offers sound advice as to the applicable Chapter of BK your entity would file for.
It sounds as though a Ch. 7 BK proceeding would be in order for the entity. Another problem may be if you have personal liability for the debts of the business. If that is the case then a BK at the personal level may also be necessary.
If you need a consultation I have an office in Ontario and Riverside.