So many factors must align for a small business to work. 50% of small businesses fail. Small businesses are the backbone of the US economy. Bankruptcy law favors small businesses. If the majority of your debt is business debt, no means test is required.
Bankruptcy may help you bounce back after a business failure. Bankruptcy won’t restore the lost dream, but it can stabilize your finances and give you a clean slate to build new hopes and dreams.
Bankruptcy will keep you from getting a judgment against you. Bankruptcy stops most creditors from property seizure. Chapter 7 bankruptcy can relieve you of unsecured debt created from trying to make a business work. In short, bankruptcy may be an economical way to bounce back. Don’t let unwarranted fear of bankruptcy stop you from bouncing back.