As you may know, as the personal guarantor of the business loan you remain 100% liable for the business debt. Therefore your choices are to negotiate the best deal you can to pay the debt or to file a bankruptcy
I will explain.
As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.
A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.
A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.
Here are the exemptions for Louisiana:
Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.