Chapter 13 Bankruptcy – Repayment
If the small business is a sole proprietorship and the owner’s personal and business debts are mixed, a Chapter 13 bankruptcy may be the best choice. The number one reason sole proprietors file under Chapter 13 is to save a home from foreclosure.
In some ways Chapter 13 is an individual’s version of Chapter 11 – the debtor may maintain basically all of his or her assets so long as they can develop a reasonable repayment plan that puts them on better financial footing for the future. At the end of the repayment plan period many of the debtor’s debts, both business and personal, are forgiven.
If you are the owner of a small business and believe that some form of bankruptcy is the next logical step, you should talk to an experienced bankruptcy attorney today.