Well a Chapter 13 could work but it depends. Really if you even think it might work then sit down with a local bankruptcy attorney and lay out the situation. Together I am sure you can determine if this person is a good candidate or not for Chapter 13 (maybe even Chapter 11 – more expensive but could be the solution). I do practice bankruptcy law but I’d need to know a bunch more to have any idea on whether or not bankruptcy is an option.
Good luck. Sounds like an interesting case. I’d talk to the attorney sooner rather than later especially where you are liquidating the LLC. He or she might want to make sure nothing will impact any potential bankruptcy.