Bankruptcy relief is not just available for individuals who have run into financial trouble on a personal level. Chapters 7, 13 and 11 are also applicable to business. There is a lot that has to be considered when thinking about this for business. Not only what relief it may bring now, but what effect is it going to have on your business wise in the future.
There is also the possibility that you are deep financial trouble on a personal level and you need to think about filing for bankruptcy both for business and for personal. The status of your business is important in respect to the outcome of your bankruptcy proceedings. As a sole proprietor or partner in a Corporation you are responsible for the business debts. Your personal assets are at risk with the creditors.
In a Corporation situation you are not usually personally liable unless you personally co-signed the business debts. If you are going to totally shut down your business you may be able to apply for a Chapter 7 bankruptcy for your business.
If you are the sole proprietor then you would have to file for personal bankruptcy to get rid of the business debts. A business cannot file for Chapter 13 bankruptcy, but if you are a sole proprietor you can file for a Chapter 13 which would include the business debt.
There is also an option for a Chapter 11 Bankruptcy and this is sometimes called the business reorganization bankruptcy. In some cases Chapter 11 is also used for personal bankruptcy. In this case it would be for those who were not eligible for Chapter 13, and their unsecured debt exceeded $360,475 or their secured debt was more than $1,081,000. Anyone thinking about business bankruptcy should seek out the services of a qualified Fort Worth bankruptcy lawyer.