If you file for a personal chapter 13 bankruptcy, will it…

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Chap 13, unlike Chap 7, is not liquidation bankruptcy. Your assets are not taken to pay your creditors in Chap 13. So your interest in a business is not at risk; it is listed as an asset in your bankruptcy schedules, but nothing is different from a normal debtor in Chap 13.

Assuming you qualify per the bankruptcy tests to file Chap 13, your plan is your disposable income each month. You must have income above your living expense to file Chap 13 though; something to pay creditors monthly to create a plan. You cannot be making $3,000 net and spending $2995, $5/month wont create a confirmable plan. The number will vary, but generally you have to have at least $100/month of disposable income at a bare minimum.

That is, the extra income after you pay basic living expenses- rent/mortgage, utilities, food, car/gas. Any extra money you make goes to ay your creditors each month for 5 years. After those 5 years the rest of the unsecured debt (credit cards, medical bills, anything not secured by collateral like a mortgage or car loan) is discharged and you no longer owe.

Chap 13 is incredibly complex even for lawyers, so you really need a consult with a local bankruptcy lawyer to determine if you can even file chap 13 and what your plan payments would look like based on your financials.

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