Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney here to assist you.
Is he wanting to file a personal bankruptcy?
A Chapter 13 is a bankruptcy where debts are re-structured and combined into one monthly payment that you make to the trustee. You are required to pay the full amount of all debts, but you're just given a longer time frame (reduces the monthly payment amounts) to do so. But, the benefit is that you get to keep all of your stuff.
In order for a person to qualify for a Chapter 13, he/she must be able to prove that there's enough income to fund a plan. Thus, the fact that he's 50% owner in the business would be helpful to prove that he has the income to support the plan.
I would recommend that you see a local bankruptcy attorney about this issue and go through all of your assets, property, liabilities and decide if a 13 is the best option.