Can I file business bankruptcy as a sole proprietor?
CAsmb_owner1 month ago
Sole proprietor. Business failed. Personal and business debts are tangled. Help.
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✓ Verified answer from a licensed attorney — shown first
As a sole prop you ARE the business legally — your business debts and personal debts are all your debts, and a personal bankruptcy (Ch 7 or 13) addresses both. The means test gets a little more forgiving for 'business-debt' cases (debts primarily business in nature). Subchapter V of Ch 11 is also worth considering if you have more substantial debt — designed for small business reorganization, faster and cheaper than traditional Ch 11. The 'tangled' part is exactly where a good consumer-business bankruptcy attorney earns their fee.
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Please readThis is a community space for sharing personal experience — it is not legal advice, and posts here are not from Lawma or your attorney. We strongly encourage you to post under an anonymous handle, keep questions general, and avoid posting private details of your active case. For advice about your own situation, message your attorney.