San Jose Bankruptcy Attorney discusses Chapter 13 Eligibility
San Jose Bankruptcy Attorney discusses Chapter 13 Eligibility
Are you the owner of an LLC or LLP and trying to avoid the high cost of a Chapter 11 bankruptcy by filing a Chapter 13? Unfortunately you’ll have no such luck. Chapter 13 bankruptcy filings are limited to individual debtors. While LLCs and LLPs are separate “entities,” they do not meet the “individual” requirement for a Chapter 13 bankruptcy. This means that while the debtor may file for a personal bankruptcy under Chapter 13, and place his/her personal debts into a 5 year repayment plan, the debtor’s LLC or LLP must file separately under Chapter 11.
The rules are less strict for individuals who are self-employed or operate an unincorporated business. In that situation, the individual can obtain relief under Chapter 13 as long as the individual’s unsecured debts are less than the statutory limit. But again, this does not apply to partnerships and corporations.
If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 13 bankruptcy, lien stripping, discharging debt, etc. we can help! We have bankruptcy attorneys in San Mateo, Fremont, Sacramento and San Jose.
