Can I File Bankruptcy on my Business?

While individuals can file both Chapter 13 and chapter 7 cases for themselves, there are limitations in filing a bankruptcy case on behalf of a business.

Bankruptcy cases for a Limited Liability Company or a Corporation must be filed by an licensed attorney. To file otherwise would be considered the unauthorized practice of law, a felony.

However, if the business is merely a sole proprietorship or conducted under a trade name, the debtor would be the owner of the sole proprietorship and would be permitted to file the bankruptcy case in his or her own name, as the owner of the business.

But the debtor must choose an option; filing a Chapter 7 and Chapter 13 at the same time, for the same debtor, is not generally permitted.