Can you file chapter 13 for a business and chapter 11 personally?
My business is failing. I am getting sued for 200k and my bank forclosed on my loans. My building and my home is going into forclosure. Can I fill bankrupacy persoanly and for my business and try to save my home.
Of course you can. Both are seperate legal entities.
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Both are Re-organizations, as opposed to the liquidation Chapter 7 bankruptcy.
Chapter 13 of the bankruptcy laws generally enables a person with regular income to stop his creditors’ collection efforts while he pays his debts, in whole or in part.
Unlike a Chapter 7 bankruptcy, which is filed for the purpose of discharging a person’s unsecured debts, a Chapter 13 bankruptcy allows a person who has equities to keep his property and assets while paying other debts off over time.
Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, or individual with unsecured debts of at least $336,900.00 or secured debts of at least $1,010,650.00, although it is most prominently used by corporate entities.
I would speak to an attorney to determine which is best for you.
Good luck!
References :
http://www.chicagobar.org/public/diallaw/46.asp
http://en.wikipedia.org/wiki/Chapter_11
July 3rd, 2009 at 9:45 am
Of course you can. Both are seperate legal entities.
References :
July 3rd, 2009 at 9:50 am