As you have learned from your reading this week, there are various forms of bankruptcy. Imagine that you are a business person that has been operating your business for 10 years. Recently your business has begun losing money. In fact, you are now $50,000 in debt to various creditors. Your debts are not secured. You are operating your business as a sole proprietor. Your business had been very successful and you have every reason to believe that you could make it successful again. Friends and relatives are telling you not to give up.

You have a home and a 2020 Tesla Model X vehicle and a small savings account that has about $25,000 in the account. Your partner, you were legally married 11 years ago, also has a Tesla Model S and a rental income property that he owned prior to your marriage. You and your partner have remodeled the rental property using money from your personal accounts and revenues produced by the business.

What form of bankruptcy might be best for you? Consider the fact that you want to be in business again, don't want to lose your personal property, and need some form of income or access to savings to continue taking care of basic needs. You are also hopeful you can keep your partner's assets protected. Should you have made any different decisions about your business formation, in light of your current situation, when you started business 10 years ago? What, if anything, would you have done differently about your business formation and why?