As a Sole Proprietor do I file bankruptcy as an individual?

As a sole proprietor, there is no separation between your business and your personal assets, unlike for corporations where the business is a separate legal entity. As such, since your financial situation between the business and personal is all mixed up, if either you or your business is struggling with debts, you'll be declaring a personal or individual bankruptcy. For a sole proprietor bankruptcy, this means you have two main choices:

Chapter 7

Chapter 7 is appropriate if your income (or the businesses income) is less than the state median or if you pass a means test and prove you can't pay the bills and still have money left to live on. With chapter 7, many of your assets will have to be liquidated. Some states do permit you to keep assets that are considered "tools of the trade" though. This refers to things you need to run your business, so you should check into the rules where you live to find out if you'll be able to keep some of your business things. At the end of a chapter 7 bankruptcy, any balance remaining after distribution of the asset liquidation will be forgiven on eligible debt. This includes both business debt and personal debt, since as a sole proprietor, everything was in your name anyway.

Chapter 13

Chapter 13 is appropriate if your income is too high for chapter 7. This also allows you to restructure, instead of liquidate. It is sort of the sole proprietors version of a chapter 11. You get to renegotiate your debts and pay them off over a three to five year period, while keeping all of your assets and hopefully keeping your business running.

To get help making a decision on business bankruptcy and filing the right type of sole proprietor bankruptcy, you should strongly consider speaking with an attorney.