Most people think of Chapter 11 when they think of reorganizing a business. While it's true that you have to file Chapter 11 if you have a corporation or a limited liability company (LLC), if you're a sole proprietor you can reorganize through Chapter 13.
A sole proprietor simply means a person running a business without having incorporated or formed an LLC through which she conducts the business. If you're "doing business as" (d/b/a), you're probably a sole proprietor. There is no legal distinction between the business and the individual in a sole proprietorship. While this is often a disadvantage when it comes to protecting your personal assets (home, car, savings, etc.) from business debts, if it becomes necessary to reorganize the business being a sole proprietor lets you do so through Chapter 13.
Chapter 13 is only for individuals, which is why businesses generally don't file Chapter 13. But because there is no difference between the individual and the business in a sole proprietorship, solos can reorganize in Chapter 13. This means they can modify business leases, pay some debts, reject some contracts and often get all the advantages of Chapter 11 without the expense or hassle. So if your business is struggling Chapter 13 might be just what you need.
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