If you as the business owner personally guaranteed any of the business debts, it won’t do any good to simply file for a business bankruptcy. Assuming the business is its own separate entity (e.g., C-corp, S-corp, or LLC), and you personally guaranteed any of the debts, you will still be on the hook for the debt even if the business declares bankruptcy or you dissolve the business. This is the reason why oftentimes, it is necessary to file for personal bankruptcy in conjunction with dissolving the business.

Posted in: Business Bankruptcy FAQ