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Eliminate Personally Guaranteed Debt in Metro Detroit

Comprehensive Bankruptcy Guidance in the Detroit Metro Area

Personal guarantees can help you build a business from the ground up, but they can also place you in serious financial jeopardy if your enterprise fails. If creditors are looking to collect on your personal guarantees, you will need to take swift and decisive action to insulate your personal assets from your business debts. 

Our Troy-based attorneys are ready to help you discharge business debts. Our team at Wolfson Bolton Kochis PLLC has many years of experience and is extensively familiar with the intricacies of consumer bankruptcy. We can evaluate your unique financial circumstances and determine whether filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can help you eliminate crushing business debts. Our firm aims to provide you with the high-quality representation and cost-effective services you need to secure the fresh financial future you deserve.

If you are in Genesee or Livingston County, Northern Michigan or the Upper Peninsula, reach out today!


Schedule a free initial consultation to explore your bankruptcy options. Contact us online or call (248) 609-1855!


Understanding Personal Guarantees for Business Debts

If you are an entrepreneur with limited assets, committing to a personal guarantee may be the only way you can secure the essential loans you need to establish your business. When you commit to a personal guarantee, you agree to take individual responsibility for your business’s debts. You “guarantee” you will cure the loan with your own assets if your business becomes unable to meet its obligations.

This means your creditors can go after your business and you if your business fails and defaults on a loan. Turbulent and unpredictable economic conditions can cause all types of businesses to struggle and become unable to pay their debts. When personal guarantees are involved, however, you — the individual — are on the hook for resolving what your business cannot. This can result in an otherwise financially prudent individual becoming abruptly saddled with overwhelming debt. If you are now responsible for business debts, creditors may eventually choose to sue you to guarantee payment.

How Bankruptcy Interacts with Personal Guarantees

If your business is struggling, you may be tempted to explore Chapter 11 bankruptcy. This type of bankruptcy relief gives companies the opportunity to reorganize their debts, assets, and obligations with the goal of remaining solvent. However, Chapter 11 bankruptcy for a business entity will not eliminate the individual’s personal guarantees. In other words, when a business entity files for Chapter 11 bankruptcy, the individual with personal guarantees is still left standing as an obligor.   Subchapter V of Chapter 11 may be an option for either the individual business owner or the small business entity itself as a means for effective reorganization, and ensuring personal asset protection.

A grand majority of business debts associated with personal guarantees are considered “dischargeable.” This means that business debts facilitated by personal guarantees can often be eliminated through a successful consumer bankruptcy filing

There are several types of consumer bankruptcy options available for the individual looking to discharge business debts. Our personal guarantee elimination attorneys located in Troy can advise which approach is right for your situation.

Two types of consumer bankruptcy are generally available and useful when attempting to discharge business debts.

Our Metro Detroit personal guarantee elimination attorneys can advise which approach is right for your situation.

Chapter 7 bankruptcy involves a liquidation process and can help you quickly discharge business debts. In a Chapter 7 bankruptcy, your non-exempt assets will be sold – or “liquidated” – in exchange for an elimination of all dischargeable debts, including multiple types of personal guarantees. Many types of essential assets can be exempted and protected from liquidation. Chapter 7 bankruptcy may be the best choice if you have limited income or assets. If a majority of your debts are business-related, you may be exempt from the Michigan Means Test, even if you still have considerable income that would ordinarily preclude you from filing. 

Chapter 13 bankruptcy does not involve liquidation but is a more drawn-out process. You will commit to a repayment plan that considers all your outstanding obligations, including business debts. The plan will last between three and five years and require a monthly payment tied to your current ability to pay, not the total size of your debt. Upon completing the repayment plan, you will generally be able to eliminate all remaining dischargeable debts, including most personal guarantees. 

Get in Touch with Us Today

Our Metro Detroit personal guarantee elimination lawyers are prepared to help you navigate the consumer bankruptcy process as efficiently and effectively as possible. At Wolfson Bolton Kochis PLLC, we strive to provide each of our clients with the personalized attention, respect, and compassion they deserve. We know how to address personal guarantees through bankruptcy and can review all legal options available to you.


Eliminate business debts with our help. Call (248) 609-1855 or contact us online to discuss your case with our experienced team of legal professionals.


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