Can I file for bankruptcy if I’m a Sole Proprietor?

bankruptcy for small business

Many small businesses are run and operated by the business owner/sole proprietor. This is common for service oriented businesses like carpet cleaners, yoga instructors, handymen, etc.

This type of small business usually doesn’t have a lot of valuable assets that can be possessed by the bankruptcy official to pay your creditors.  In this situation you can still keep your business and continue operating it after you file for a Chapter 7 Bankruptcy.