Business debt is often no different than any other kind of debt. So, for example, if someone is a sole proprietor or co-signed a debt for their LLC, Corporation, or other business entity, creditors may often agree to settle the debt. Chapter 7 bankruptcy can also usually eliminate these debts. Or these debts can also be wholly or partly repaid through Chapter 13 bankruptcy.
Of course, the same exceptions rules apply to business debts if these debts are for taxes, secured debts financing business purchases, or problem debts, such as those obtained by fraud.
One significant benefit is available in bankruptcy if the business portion of debt is over half of the debt. The Means Test may not be required in that situation.
