Yes. Your employment status will not affect your ability to file for bankruptcy protection. However, your income will determine what chapter you file. Some of my concerns for my self-employed clients and their business is “are there any assets associated with the business (or otherwise) that the Trustee can seize? What is the business worth? Can it be sold? What debts are my clients personally liable for versus what debts are the liability of the business? Self-employed clients or clients that have accumulated primarily business debt, should note that business debt is treated differently with respect to the “means test”.
How do I prove my income if I am self-employed?
You must produce “profit and loss statements” for the six months before the bankruptcy filing. You will also need bank statements, both personal and business for the six months prior to filing of bankruptcy and three years of business and personal income taxes.