How does Personal Bankruptcy Affect a Business?
Filing personal bankruptcy does affect your business. If you decide to file a personal
bankruptcy and you own a small business incorporated as a limited liability company, your business assets will be
How filing personal bankruptcy affects a business
If you have both personal assets and business assets, you need to decide if to file personal
bankruptcy or business bankruptcy. If you file for a personal bankruptcy, you (and your spouse) will have to
declare your business assets as:
If you, however, decide to file business bankruptcy instead of personal bankruptcy, then you
must follow all the procedure for filing business bankruptcy. You must have all the business documents such as
minutes of the business and stock certificates and registrations.
Can I file Chapter 13 bankruptcy? How does personal Chapter 13 bankruptcy affect my
You cannot file a Chapter 13 bankruptcy as a business, even if you have a sole proprietary
business. If you are filing for a Chapter 13 bankruptcy, you must file for a personal bankruptcy. You cannot file
the Chapter 13 bankruptcy in the name of your business. However, you can include the business related debts in your
Chapter 13 bankruptcy filing that you are personally liable for.