There are ways to keep your home through a bankruptcy, but they need to be done within the guidance of a qualified bankruptcy attorney. There are routes for home protection through Chapter 7 or Chapter 13, but both need to be done with great care.
Chapter 7 bankruptcy can affect small businesses in radically different ways. Especially if the owner has a personal guarantee in the company’s debt, then the filing could trigger the pursuit of said person’s personal assets.
Although Chapter 11 bankruptcy offers significant protections for struggling businesses, the resulting reorganization may not be worth the time, effort and money involved. It’s important to understand what actually happens through the filing to make sure it’s right for you and your business.
After filing for personal bankruptcy, you’ll be granted the protection of the automatic stay. From there, the court will assign your case a trustee and that person will organize a Meeting of Creditors to alert them of your filing.