Business Chapter 11 vs Personal

[HighlyMotivated]

What is the name of your state (only U.S. law)? CO

There are 2 partners in the business LLC. Bank loan is paid off and closed.
The only debt is the business debt to unsecured creditors, but the business can not pay it off. If the business sells the equipment it still will not be able to pay off all the debt. So, instead of doing that and dealing with litigation after the company closes we are looking at declaring a Chapter 11 under the business LLC. Will that also show up on our personal credit, we both have good personal credit? We are trying to wind down the company-sell the assets to someone who can keep the business going, get capitol to pay as much debt as possible - and without fear of successor lawsuits.What is the name of your state (only U.S. law)?

 

[HomeGuru]

What is the name of your state (only U.S. law)? CO

There are 2 partners in the business LLC. Bank loan is paid off and closed.
The only debt is the business debt to unsecured creditors, but the business can not pay it off. If the business sells the equipment it still will not be able to pay off all the debt. So, instead of doing that and dealing with litigation after the company closes we are looking at declaring a Chapter 11 under the business LLC. Will that also show up on our personal credit, we both have good personal credit? We are trying to wind down the company-sell the assets to someone who can keep the business going, get capitol to pay as much debt as possible - and without fear of successor lawsuits.What is the name of your state (only U.S. law)?

**A: if there were personal guarantees on the equipment, then you can't discharge the debt through BK 11.