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Individuals, partnerships, corporations and businesses are included
under specific Code authority for filing bankruptcy. Corporations may
file Chapter 7 cases. Individuals, partners, and sole proprietors may
file Chapter 13 and receive many of the rights and options available
under Chapter 11.
In all cases, small business owners should expect a higher degree of
scrutiny from the trustee, courts and creditors, because historically,
the addition of business accounts assets and liabilities, in addition to
personal estates, multiplies the potential for problem cases. A business
filing bankruptcy under Chapter 7 may be qualified to continue operation
for a short, temporary term in allow collection of outstand accounts and
assets.
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