A person who has a small unincorporated business may file Chapter 13. Unexpected loss of income. Unexpected medical expenses. Continuation of pre-bankrupt spending patterns. Secured creditors are free to foreclose and repossess their collateral.
Unsecured creditors are free to file suit and obtain judgments.
Interest and penalties for liabilities accrue as if the bankruptcy was never filed. Additional attorney fees can be incurred. Some debts may not be discharged.