Small Business Chapter 13 Bankruptcy Plans

Sole proprietorships businesses may file Chapter 13 repayment plans, based on income earned from their business operations. Acting as a trustee in limited circumstances, debtors may increase benefits substantially. However, be aware, trustees review all Chapter 13 business files closely and all Chapter 13 cases must pass review of the court as a condition of confirmation.

Small business owners may remain in operation, so long as regular income produced is sufficient to meet monthly payment obligations owed to the trustee. Additionally, because the debtor remains in possession of business property, Chapter 13 laws impose additional periodic reporting requirements which are reviewed regularly for legal compliance with orders of the court.