Avoiding personal bankruptcy when a business goes bankrupt?

[ScaredGuy]

Hi guys, I'm in a bit of a situation here and truly appreciate any advice. My small business which is a legitimate and registered LLC is likely in its final 6 months of solvency. Due to a high amount of outstanding customer deposits on orders not yet fulfilled, I feel that a Chapter 7 for the LLC would be most appropriate so that the customers understand that an independent 3rd party is handling the liquidation of the business and that all assets of the business are properly accounted for before being liquidated and distributed to creditors.

If the business can pay off all of its debts that are personally guaranteed 90+ days before a Chapter 7 is filed for the LLC, I *might* be able to avoid doing a personal Chapter 7 bankruptcy, is that correct?

My understanding is that there are only two reasons why I would need to do a personal Chapter 7 bankruptcy because of the business failing: to absolve myself of personally guaranteed debts and to protect myself legally from business creditors/customers.

My hope is that the business can pay off all of the personally guaranteed debts, do a Chapter 7 bankruptcy for the LLC, then I can move on with my life without tarnishing my record with a personal bankruptcy. If the business cannot pay off all of the personally guaranteed debts in full (about $65,000 worth), I might just work out payment plans with the creditors and pay them off personally in my (eventual) new career.

Thank you to anyone for any feedback/thoughts on this.

[ScaredGuy]

justbroke despritfreya sorry to bother you guys, but you have given me great advice in the past. Both of you recommended previously that we liquidate the single member LLC and that I would need to file a personal bankruptcy. However, do you think it's possible to avoid a personal bankruptcy by paying off all of the personally guaranteed debts in the business 90+ days before bankruptcy? My understanding is that I would only need to file a personal bankruptcy because of the personally guaranteed debts or if business creditors try to sue me personally. Thanks for any information.

[justbroke]

My thought is to file the liquidation of the business. Then wait to see what happens. If you end up with a personal guarantee issue, then file personally. At least that's how I would handle it.