Can a business file for Chapter 13?

Can a business file for Chapter 13?

Chapter 13 is available to individuals with regular income. If you operate your business as a sole proprietorship, you can take advantage of Chapter 13 by filing a petition in your name. Your business debts will be included in your plan.

Can you file Chapter 13 then 7?

Unless you have already received a Chapter 7 bankruptcy discharge within the last eight years, you can convert your Chapter 13 case to Chapter 7 at any time.

What does Chapter 7 mean for a business?

Chapter 7 Bankruptcy for Corporations and LLCs. Filing for business bankruptcy means someone else steps in to liquidate your business’s assets and settle its debts (in this case, the bankruptcy trustee). By Bethany K. Laurence, J.D.

Can a small business file for Chapter 13?

Small business owners can still take advantage of debt relief through Chapter 13. The relief available changes depending on how the small business is held. Regardless of how the business is organized, Chapter 13 filers who are self-employed or own a business will have extra reporting requirements during their bankruptcy plan.

How does Chapter 7 and Chapter 13 bankruptcy work?

As part of your Chapter 7 case ends, most of your debts will be discharged so you won’t need to pay them. Chapter 13 Bankruptcy works a little differently. Under this type of bankruptcy, you’ll make monthly payments from your disposable income to your bankruptcy trustee. The trustee will divide the money among your creditors.

Can a small business file bankruptcy under Chapter 7?

If you want to file bankruptcy for your business, you can use either Chapter 7 or Chapter 11. Chapter 7 shuts down your business. Chapter 11 lets you keep operating your business during the bankruptcy case. This chapter reorganizes the business during the case. Small business owners can still take advantage of debt relief through Chapter 13.

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