At the heart of the reformed bankruptcy law is a needs-based means test. This re-quires that a debtor's assets and income are considered when deciding whether the applicant is abusing the system by seeking to obtain a fresh start through bankruptcy liquidation, instead of repaying debts under a bankruptcy repayment plan.
Many small business owners who find themselves in financial trouble file for personal bankruptcy. A sole proprietor, for example, is personally liable for the debts of the business. The owners of many small HVACR businesses have also personally guaranteed business loans.