When you file for Chapter 13 bankruptcy, any business that produces income can be considered a means to make the Chapter 13 plan payments. Your business would likely remain untouched if it is viable (not laden with debt).
It is different when filing Chapter 7 bankruptcy. In Chapter 7 bankruptcy, any asset can be seized and used for debt repayment, and your business would probably be considered an asset. It might be exempted from the Chapter 7 bankruptcy filing, but you need an experienced bankruptcy lawyer to help you determine that. Arizona allows exemption of some tools and equipment related to a business up to $2500.
Filing bankruptcy when you own a business is complicated. You should consult with experienced bankruptcy attorneys such as The Frutkin Law Firm, PLC, in Phoenix, Arizona to review all of your options for business and personal bankruptcy filing when you own a business.
