Starting a small business is tough, and some small businesses do end up having to file for bankruptcy. If your small business is struggling to stay afloat, and if a financial workout isn't an option, you may have to file for bankruptcy.
A Chapter 11 bankruptcy might be a better option if you think your business could continue.
You can only file for small business bankruptcy under chapter 13 if you have sole proprietorship. Sometimes, small business owners who have linked their business and personal assets will use a Chapter 13 bankruptcy filing to avoid losing their personal assets as well as their professional ones, which is why this choice is a good option for many sole proprietorships.
Types of Small Business Bankruptcy
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