As a sole proprietor, Chapter 7 bankruptcy takes care of all your business and personal debts. The problem is that it means your personal assets are all a part of the bankruptcy estate. This could be a serious problem if your business takes a turn for the worst and you have to file bankruptcy. Instead, Chapter 13 is a solution that allows you to keep many assets and make your monthly payments toward debt. If you are unable to keep your business running, you may still be able to keep your personal property.