Can I file business Chapter 13 and personal Chapter 7 at same time?

UPDATED: Dec 12, 2013

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Can I file business Chapter 13 and personal Chapter 7 at same time?

Asked on December 12, 2013 under Bankruptcy Law, Tennessee


Terence Fenelon / Law Offices of Terence Fenelon

Answered 9 years ago | Contributor

In all lilihood, the answer to your question is no, as the to types of bankruptcy encompass different procedures with different goals and involve the same property.

I am making several assumptions in my answer as the question provides no factual background.  I assume that you are the owner of the business, or at least a majority shareholder.  If so, if you were to file a personal chapter 7 liquidation, the ownership interest would be property which must be listed in schedule B of the petition and would thus be subject to liquidation by a trustee. Thus, there would no chance pf a reorganization of debts, as in a chapter 13.

If the business in a sub-s or solely owned, un-incorporated entity, just file a chapter 13 and combine the filing.  No need to file 2 cases.  I would strongly advise seeking legal assistance as a 13 business case in full of land mines.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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