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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38913
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I have a retail business that is organized in Minnesota as

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I have a retail business that is organized in Minnesota as an LLC and is underwater due to the turn in the economy. I have a $20k SBA guaranteed loan through Wells Fargo and another $20k on a WF business credit card. Is bankruptcy an option? My personal banking is also at Wells Fargo. Are my personal assets safe from business losses?

If you personally guaranteed the SBA loan, then you are still on the hook personaly, if you put the LLC into bankruptcy. Same goes for the credit card.


If you declare personal bankruptcy in addition to the LLC, then your assets, to the extent that they are not exempt, will be subject to liquidation by the bankruptcy trustee.



Customer: replied 8 years ago.
Thanks for the answer. I appreciate it. Quick follow-up question: how can I determine whether or not the SBA loan and credit card are personally guaranteed? What do I look for in the fine print?

Unless your loan was "collateralized" by something that could be sold to get the lender its money back in the event of a business failure, then you signed a personal guarantee -- you don't need to look for it -- that's just the way SBA loans work -- no lender would give you the money without the guarantee or collateral.



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