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Will I be able to continue operating my sole proprietorship business after filing personal Chapter 7 Bankruptcy?

Merced, CA |

I am the only employee of my business and it is run out of my home.

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Attorney answers 4


I don't see why not.


Probably but go over the details with your bankruptcy attorney. If you don't have one, I recommend getting one.



Bankruptcy ch 7 provides a fresh start by the discharge of many--perhaps all--of a sole proprietor's debts. However, the price of that discharge may be the loss of non-exempt property rights (inventory, for example) or the extinction of critical lines of credit, that might make continuation of the business unfeasible.


Most likely, yes, but why not let your bankruptcy attorney help you answer this question based on a review of all of your assets, accounts receivables, etc.