I'm new here - facing 13 and devastated

[HHM]

This is something that will need to tackled by an attorney, and don't go with the cheapest price.

You really can't keep a business operating and file bankruptcy, especially any business that has assets or inventory. Normally, the biz owner would shut down the business entity (LLC, S-Corp, C-Corp, etc), and begin operating as a sole prop. Then file a personal chapter 7 bankruptcy to eliminate all personal debt and personally guaranteed business debt. As was previously mentioned, the business entity normally need not file BK, but that puts the burden on you to do an orderly shut down.

You are not a true business person unless you file bankruptcy at least once Failing is the surest way of learning how to be successful.

[Alexiastrong]

i understand how you feel. I had to file a chap 13 a month ago. things has change and I guess my luck just ran out. but im determined to get back up and my life back in order.

[rcoveles]

This is something that will need to tackled by an attorney, and don't go with the cheapest price.

You really can't keep a business operating and file bankruptcy, especially any business that has assets or inventory. Normally, the biz owner would shut down the business entity (LLC, S-Corp, C-Corp, etc), and begin operating as a sole prop. Then file a personal chapter 7 bankruptcy to eliminate all personal debt and personally guaranteed business debt. As was previously mentioned, the business entity normally need not file BK, but that puts the burden on you to do an orderly shut down.

You are not a true business person unless you file bankruptcy at least once Failing is the surest way of learning how to be successful.

I'm not sure I can do this though. I haven't met yet, but I did speak to one lawyer, who just asked me some basic stuff on the phone and said we're looking at a 13, based on our household income. I'm self employed as an LLC, so forcing me to shut down would effectively take away my ability to pay back. Can they do that? I'm filing alone, but we both own our home, and I am not going to lose my home. My wife makes too much for us to do 7, and I don't want to do 7 anyway. I really just want to continue my business, and make affordable payments to repay my debt. I thought that was what 13 was for?

Also - what would shutting down entail? I work from my home as an LLC, so I can't really "close." Would it be possible to just change my company name, continue as is, and still file 13? I'm confused.

[HHM]

It's somewhat complicated to get into here. It really depends on the nature of the business. By shutting down, I do not mean shutting down the "operation", I simply mean dissolving the LLC. My guess is, some accountant at some point said you should incorporate as an LLC for tax purposes, which is fine. But an LLC does not necessarily protect it or its assets from creditors.