Bankruptcy Options for the Self Employed
- Pursue a Chapter 13 bankruptcy if you realistically believe that you will have an appropriate level of income to pay off the majority of your debts over two to five years. A Chapter 13 bankruptcy permits a self-employed individual the ability to develop a repayment plan overseen by the bankruptcy court.
A Chapter 13 bankruptcy is well suited if you desire to continue in business, to carry forth in your current course of self employment. Through this bankruptcy procedure, the vast majority of your creditors will receive payment for the debts owed to them by you. Consequently, most of these creditors are likely to be willing to do business with you into the future. - File a Chapter 7 bankruptcy if your available income simply is not enough to satisfy your overall debt, even if you were provided a two- to five-year payment plan. A Chapter 7 bankruptcy allows you the ability to discharge or liquidate the vast majority of your debt. Pursuing this type of bankruptcy allows you the ability to "start over with a fresh slate."
Before filing for a Chapter 7 bankruptcy, you are required in all states in the United States to successfully complete a credit counseling program. The clerk of the bankruptcy court in your area can provide you with information about approved credit counseling and education programs. - A Chapter 7 as well as a Chapter 13 bankruptcy are complicated for a self-employed person. Although a self-employed person has the right to pursue one of these bankruptcies without the assistance of an attorney, such a course is not highly recommended. The fact is that your interests are best served through representation from a qualified bankruptcy lawyer who is experienced in dealing with cases involving self-employed men and women.