Can I file chapter 7 bankruptcy for my small business? 6 Answers as of October 13, 2010

I own a small business in which I am a sole proprietor. It has come to the point where bankruptcy may unfortunately be our best option and we may have to close down. Our business debts have ballooned and we have an expensive lease. Is this actually a situation that we can use Chapter 7 for?

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The Law Office of Mark J. Markus | Mark Markus

Of course. If your business is merely a DBA of yourself, there is no difference between you filing a chapter 7 and your small business filing. You are the same entity.

Answer Applies to: California

Replied: 10/13/2010

Greifendorff Law Offices, PC | Christine Wilton

Yes. However, you want to look at the nature of the debt incurred. If you have personally guaranteed the debts, then you may need to file personal bankruptcy.

Answer Applies to: California

Replied: 10/13/2010

Law Office of Barbara Seeley Curtis | Barbara Curtis

Yes. Please call for a free consultation.

Answer Applies to: Florida

Replied: 10/13/2010

Law Offices of Michael J. Berger | Michael J. Berger

If you are a sole proprietor of a business, then you can file personal bankruptcy and your bankruptcy will include your sole proprietorship small business. Your sole proprietorship business is not a separate entity that can file bankruptcy. Corporations and LLCs are eligible to file bankruptcy.

Chapter 7 allows you to break a lease, if that is what you want to do.

Answer Applies to: California

Replied: 10/12/2010