Business Closure after Pandemic: Resolving $150,000 in Personal Liability
Case Overview: Client B, a restaurant owner in their 50s, was forced to close their business due to the plummeting sales and rising labor costs following the COVID-19 pandemic. Even after closing, Client B was left with approximately $150,000 in debt, including lease penalties and SBA loans (which included a personal guarantee). Facing the risk of a lien being placed on their home, Client B sought help from Song Law Firm.
Song Law Firm’s Assistance: For business owners, business debts and personal debts are often intertwined. Song Law Firm developed a strategy linking the business dissolution with a personal bankruptcy filing. We demonstrated that a significant portion of the business debt was dischargeable under personal bankruptcy laws. Crucially, we maximized “Exemptions” to protect Client B’s primary residence (Home) from liquidation.
Result: Through Chapter 7 bankruptcy, Client B successfully discharged both the business-related personal guarantees and personal debts totaling $150,000. Most importantly, they were able to keep their home and have since found re-employment, regaining stability.
[Contact Us for a Consultation] Business failure doesn’t mean the end. There is a path to recovery. Consult with Song Law Firm’s Bankruptcy Team.
💬 KakaoTalk Channel: Song Law Firm 📞 Phone: 201-461-0031 📧 Email: mail@songlawfirm.com 🌐 Website: www.songlawfirm.com
Disclaimer: These success stories are based on actual cases that have been reimagined for privacy. Past results do not guarantee similar future outcomes. Legal results may vary depending on the individual facts of each case.
