Small Business Bankruptcy: When Your Personal Guarantee Is on the Line
Signed a personal guarantee for your business? That debt can survive even after the business closes. Chapter 7, 11, 13, and Subchapter V for Central Florida small business owners. Free consultation.
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Small Business Bankruptcy · Personal Guarantees · Free Consultation
When Your Personal Guarantee Is on the Line
If you signed a personal guarantee to get financing for your business — a loan, a lease, a line of credit — that signature is what determines whether closing the business actually ends the debt, or just moves it into your personal life. Most small business owners find this out the hard way: the LLC closes, and the calls keep coming anyway.
Industries Where This Is Especially Common
Auto Dealers
Floor plan financing — the credit line that keeps cars on your lot — is almost always personally guaranteed. When a lender tightens or pulls the line, that debt can follow you individually.
Restaurant Owners
Commercial leases and equipment financing are routinely personally guaranteed. A restaurant can close and the lease debt can still follow the owner.
Don't see your industry listed? Personal guarantees show up across almost every kind of small business — contractors, retail, salons, trucking, and more. The two pages above are examples, not the only businesses we help. If you signed personally for anything related to your business, reach out regardless of your industry.
Your Options, Depending on Where You're At
| If you're... | This usually fits | What it does |
|---|---|---|
| Closing for good, want the personal debt gone | Chapter 7 | Eliminates personally guaranteed business debt, typically within 3-5 months |
| Want to keep the business open, debt under the small-business threshold | Subchapter V | Restructure and keep operating, no creditors' committee, plan due in 90 days |
| Larger operation, or personal exposure too high for Chapter 13 | Chapter 11 | Full reorganization, no debt ceiling, more complex and costly |
| An individual whose personal guarantee debt is mixed with other personal debts | Chapter 13 | Reorganizes personal debt over 3-5 years while keeping assets |
Where Your Case Gets Filed
We file in the U.S. Bankruptcy Court for the Middle District of Florida — the Orlando Division for most Central Florida business owners, the Tampa Division for Polk County. It's the only federal district we practice in, and today nearly all hearings are held remotely by video.
Florida has the highest share of Hispanic-owned small businesses of any state in the country. Attorney Juan Burgos was born in Venezuela and represents clients directly in English, Spanish, and Portuguese — no interpreters, no runaround.
Frequently Asked Questions
What exactly is a personal guarantee?+
It's a promise you sign as an individual — separate from your business entity — agreeing to personally repay a debt if the business can't. Lenders and landlords ask for them specifically because an LLC or corporation alone doesn't guarantee they'll get paid; your personal guarantee does.
I already closed my business. Am I still on the hook?+
Usually, yes, if you signed a personal guarantee. Closing the LLC ends the business, but a personal guarantee is a separate obligation that belongs to you individually. The lender or landlord can generally still pursue you for the remaining balance unless the guarantee itself is addressed, most often through bankruptcy.
Can I keep my house and personal savings?+
In the large majority of cases, yes. Florida's homestead exemption is one of the strongest in the country, and retirement accounts are fully protected under federal law. We'll go through exactly what's protected in your situation during the consultation.
Do I need to be a U.S. citizen to file?+
No. Florida residency and meeting the income requirements are what matter, not immigration status.
What Our Clients Say
Mr. Burgos was the only attorney who met with me and agreed to take my case just days before my bankruptcy hearing. I called every lawyer in the Kissimmee and Orlando area, and even the most prestigio… Mr. Burgos was the only attorney who met with me and agreed to take my case just days before my bankruptcy hearing. I called every lawyer in the Kissimmee and Orlando area, and even the most prestigious ones didn't treat me the way he did. I spoke to various attorneys; some wouldn't take my case because they didn't speak Spanish, and others declined for different reasons. I give him 5 stars and highly recommend him for his excellent work and good communication.
Excellent experience with my attorney throughout the entire bankruptcy process. From the beginning, he guided us and explained each step clearly, making what can be a very stressful process feel much … Excellent experience with my attorney throughout the entire bankruptcy process. From the beginning, he guided us and explained each step clearly, making what can be a very stressful process feel much simpler and more manageable. He was always professional, attentive, and available to answer our questions. We are very grateful for his help, dedication, and the peace of mind he provided throughout the process. We definitely recommend him to anyone who needs a reliable and professional bankruptcy attorney. Thank you so much for everything! God bless you always.
Juan is a great attorney. He communicates clearly and professionally. And his work ethic is second to none. I would recommend anyone in need of legal services to him in the future.
An excellent and highly professional lawyer with extensive knowledge. He explained every detail clearly and concisely, making us feel supported and giving us great confidence throughout the process. I… An excellent and highly professional lawyer with extensive knowledge. He explained every detail clearly and concisely, making us feel supported and giving us great confidence throughout the process. I highly recommend him.
Bring Your Numbers. Get a Straight Answer.
Free, confidential consultation. Bring your loan, lease, or guarantee documents — you'll leave knowing exactly which chapter, if any, fits your situation.
By Juan C. Burgos, Esq. — Florida Bar No. 84056. This page is for general educational purposes and does not create an attorney-client relationship or substitute for individual legal advice. Every situation is different. Juan Burgos Law is a debt relief agency under federal law.