Please note that for legal reasons my answers are only intended to be general/educational information
rather than specific legal advice
. If you need specific legal advice, then you must consult with a local attorney in your jurisdiction.
The business would become part of your bankruptcy estate if you were to file for bankruptcy, and it would be used to repay your creditors. The bankruptcy trustee
would basically run the business and possibly sell it or liquidate it. In answer to your second question, based on what you wrote I don't know of a feasible way to stop building debt and save the business ... unless you have wealthy family who can help. Unfortunately, it doesn't sound like you're going to get any loans any time soon. I don't know what else to tell you about raising capital.
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