Small Business Debt
Many business owners believe that, if their business is in financial stress, their only option is a liquidating Chapter 7 or a Chapter 11 reorganization. A business owner may know enough to know that a Chapter 11 is expensive to file (it is), and think that their only option is to close the business and file a Chapter 7. That is not always the case.
Even though a Chapter 13 can only be filed by individuals (not business entities), it is often the case that having the business owner file a Chapter 13 case will help reorganize debt to the point that the business is able to survive. If you are a small business owner who is having financial difficulty, a consultation with an experienced Chapter 13 attorney is worthwhile. Often, due to the nature of the debt and the way the business is organized, “business” debt is actually eligible to be reorganized and/or discharged in a Chapter 13.