As an owner of an LLC, you are likely faced with both personal debt and business debt. From here, you have a couple options available to you. When faced with these options, you must consider many factors to determine which route is best.  The first thing that must be taken into consideration is whether you are the majority owner of the business or in a partnership. If you file personal bankruptcy as the sole or majority owner of your LLC, your bankruptcy trustee may vote to either sell the business or liquidate it and distribute any proceeds to your creditors.  Your bankruptcy advisor will take a cost/benefit approach to determine whether it would be the best option to liquidate your business. When a business fails, your lawyer will review how much it would cost to dissolve and liquidate the assets, what they could sell for, and whether any of them are exempt from being sold. In many cases, when there is little left in terms of value to be gained by liquidating the company's assets, liquidation just doesn't make the most financial sense. However, if the business in debt has valuable, nonexempt assets that can be dissolved and sold, your lawyer will most likely advise this route.  On the other hand, if you are a partner of an LLC, a personal bankruptcy claim won’t always affect your business. Unless you are the majority shareholder, your trustee likely won’t pursue a dissolution of the corporation. It is also possible that in a partnership, you will need to sign a buy-sell agreement that requires that you relinquish your ownership interest before filing for personal bankruptcy. Failure to adhere to this agreement could result in a lawsuit against you from your LLC’s co-owners.