Business owners
Small business debt
For owners whose business debt became personal: personal guarantees, a closed shop, or a business that could survive with some breathing room.
6 min read · Plain English · Updated for 2026
- Paths
- 3 main roads close, restructure, or a personal plan
- Flat fee
- From $2,500 for owners' personal cases
- Consult
- 60 minutes free, with Hannah Brecht
What it is, in plain words
Small business debt rarely stays inside the business. Personal guarantees on leases and loans, merchant cash advances, payroll taxes and credit cards in your name can follow you home.
Which path fits depends on whether the business is open or closed, how it is set up, and what you want to happen next. We start with those three questions, not with a form.
Often a good fit if
- You signed personal guarantees on a loan, lease or equipment
- The business closed and the debts are still in your name
- You are a sole proprietor and business and personal debts are mixed together
- The business works but is buried in short-term loans or cash advances
Things to weigh first
- Payroll trust fund taxes usually are not discharged and need their own plan
- A corporation or LLC does not receive a Chapter 7 discharge; your personal case is separate
- Closing a business has steps of its own, like final tax returns and notices to employees
Step by step
How it usually goes with us
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01
Free 60-minute consult
Open or closed, how the business is set up, and what you want next.
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02
Sort the debts
Business-only, personally guaranteed, or tax: each one is handled differently.
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03
Choose the road
Close it, restructure it, or protect yourself personally. Fees quoted in writing.
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04
File and follow through
We handle the court side and help you with landlords, lenders and payroll notices.
Three roads for business owners
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Chapter 7
Closing the business
A trustee winds up what is left. Owners who signed guarantees often file their own personal case alongside it.
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Chapter 13
Sole proprietor, still working
A personal repayment plan that can include business debts, as long as the total stays within the limits.
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Chapter 11, Subchapter V
Keep the business running
A streamlined reorganization built for small businesses, with debt limits. We handle smaller cases and bring in co-counsel when a case needs more hands.
Which road fits depends on the business structure, the debts and the goals. These are general descriptions, not a recommendation.
Small business
Questions people ask us
Can I keep running my business if I file?
Often, yes, especially as a sole proprietor in Chapter 13 or a small business in Subchapter V. In Chapter 7, an open business is harder to keep. We walk through the trade-offs at the consultation.
What about merchant cash advances?
They are handled case by case. Some are treated as loans and some as purchases of future sales, and the contract matters. Bring it with you and we will read it.
Will filing affect my business credit?
It can. A personal filing shows on your personal credit, and lenders may ask about it later. We help you plan for that, including how to rebuild.
Other options to compare
All options-
Fresh start
Chapter 7 bankruptcy
A fresh start for many unsecured debts, usually in about four months, while you keep what the law protects.
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Repayment plan
Chapter 13 bankruptcy
A three to five year plan that can pause a foreclosure, catch up missed house or car payments, and protect what you want to keep.
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Urgent help
Foreclosure defense
Got a foreclosure summons or a sheriff's sale date? There is often still time to act. Let's look at it today.
Free consultation
Ready to talk it through? It's free, and there's no judgement here.
A 45-minute consultation in our office, by phone or by video. You'll leave knowing your options, the likely cost and the next step, even if that step is not bankruptcy.
