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Chapter 7 bankruptcy will work best for a sole properitor who wants to keep a service oriented business open or who wants to shut down any business while wiping out business and personal debt individuals who have signed a personal guarantee for business debt do best to wipe it out by filing for chapter 7 in their own namefor most small business owners chapter 7 bankruptcy is a better option but in some situations chapter 13 bankruptcy is the way to go when chapter 7 bankruptcy is better than chapter 13 here are some reasons why chapter 13 is not ideal for most small business ownersin fact it actually makes it easier for creditors to reach the partners personal assets because the trustee in a chapter 7 bankruptcy case may sue the partners personally to recover some cash to pay the partnerships debts speak to a business lawyer if youre interested in filing a business bankruptcy for your partnershipget this from a library bankruptcy for small business owners how to file for chapter 7 stephen elias bethany k laurence a guide to making decisions about whether to file for bankruptcy to stay in business or to close down followed by step by step instructions on how to proceed with the bankruptcy process and beyondwhen youre overwhelmed with debt and need a fresh start filing for bankruptcy can help but to fully take advantage of its benefits you need to know your options in these books nolos authors explain what each of the most commonly filed bankruptcy chapters can do for you

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