Chapter 13 Bankruptcy for small business can help some business owners.
By filing a Chapter 13 case, business owners may be relieved from personal guarantees and other obligations, which may allow their business to operate. With Chapter 13, cosigners on certain types of debts are protected. Also, in many Chapter 13 cases, the business owner will receive a discharge of the majority of unsecured debts.
Often, a Chapter 13 filing may be combined with business planning or restructuring that may afford complete relief to both the business and the business owner.