Do I have to file for personal bk?

[csdave]

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

I own a small business and during this past two years I see my sales drop from around 300k to 200k. I have tried to cut all my overhead and cost down. The store is not generating enough sale to cover my overhead and loan.

I still have about 178k in SBA loan.

I am thinking about filing for BK for my business (L.L.C.), but do I also HAVE file for personal bankruptcy?

Any suggestion on what possible avenue to take to avoid personal bankruptcy?

I do have an active clearance and I want to be able to keep it and look for a job.

 

[Ronin]

I am thinking about filing for BK for my business (L.L.C.), but do I also HAVE file for personal bankruptcy?

Depends on how the business is structured, how the loans were made to you, and if you are personally liable for any debts you wish discharged.

Very few lenders will loan large amounts of money to small incorporated businesses without the added security of the business owner personally signing for it. The SBA is no exception. If they checked your personal credit before approving the loan, its a pretty good bet you are personally on the hook for the loan.

Itemize the debts you need discharged, and review the loan agreements to determine whether or not you are personally liable for these. If there is any doubt, you should refer these questions to a bankruptcy attorney,

To what extent, if any, a bankruptcy filing will affect a security clearance depends on a lot of factors.