I recently had a few events in my finances that changed my financial picture. I closed a business I've had for a number of years and the result is business loans totaling approximately $120K and little to no assets
for the business. Since the business was an LLC, I believe some of the loans had a personal guarantee
- though they don't appear on my credit report.
I have a house worth about $280K with about $105K still owed on it and have credit card balances I've used to basically live off of for the past 6 months - totally about $25K.
I'd like to reduce my debt as much as possible without affecting my personal credit much, if at all. To do this, I think I'd like to file for bankruptcy for the business but am not sure if by doing so that would affect my personal credit and/ my ability to secure commercial lending in the future. I'm also not sure if chapter 13 would reduce my business debt (and, if it requires I qualify some how) and, if so, how much? Could I negotiate with the lenders pre-bankruptcy and let them know I will not be able to make the payments due to going out of business and see if they'd reduce the debt. But, that, I'm sure would still affect my ability to secure commercial lending in the future.
And, of course, if there is a personal guarantee, would filing business bankruptcy
prevent those banks from going after my house or other assets or would it just be a waste of time. I'm not going to file business bankruptcy if the banks are just going to sidestep it and file against me personally.
I do not want to file personal bankruptcy
if at all possible. Any help is appreciated. Thx.