If you are a business that is considering bankruptcy then Chapter 13 is not an option, this also applies to sole proprietorship, but that doesn’t mean that because you are a business owner you can’t apply for Chapter 13 bankruptcy.
Dealing With Certain Debts
If you do have debts from your business that you are personally responsible for then you may be able to include these in your bankruptcy. You have to meet the criteria for any chapter of bankruptcy that you are applying for. For Chapter 13, the court will want to see that there is going to be enough income after the allowed expenses and the payments that have to be made have been determined is available.
Some debts have to be fully paid back under the Chapter 13. It is important to discuss your financial situation with a Texas bankruptcy lawyer so you can gain a full understanding of what you can expect from this form of bankruptcy. This form of bankruptcy revolves around a plan.
It may seem strange that you have to have money coming in when you are contemplating bankruptcy. Under Chapter 13 you should view it more as a reorganization of your finances, that is geared to making the situation more workable with a successful outcome in the end. Don’t think that just because the Chapter 13 doesn’t wipe out all your debts, that it has no value. It may be the best solution for your specific financial problems.