Small Business Bankruptcy

Chapter 7 Bankruptcy for Sole Proprietors


If your small business is struggling with debt, bankruptcy may provide some relief. Whether bankruptcy can help depends on a number of factors, including:

  • the legal form of your business -- for example, is your business a sole proprietorship, general partnership, corporation, or limited liability company?
  • whether you are personally liable for business debts
  • whether you want to close your business or keep it running, and
  • how much and what types of debts you have.

In this area, you can find information on using Chapter 7, Chapter 13, and Chapter 11 bankruptcy for business debts, how to figure out if you are personally liable for business debts, whether you can get credit or loans after filing bankruptcy for your business, and whether there are nonbankruptcy alternatives to deal with business debt in your situation.