Can I go bankrupt on both the business and personal guarantee note?

C corporations can file Chapter 7 bankruptcy but it can't receive a discharge. The corporation would continue to be liable on its debts. The advantage of filing Chapter 7 for a corporation that is going out of business is that the bankruptcy court handles the wrapping up of the business and its assets which eliminates any personal liability of the owner(s) for any claims of the corporation's creditors. A personal Chapter 7 will eliminate your liability on the guarantee of the corporation's note. If the truck is titled to the corporation, it must be sold and the proceeds used to pay the corporation's creditors. If the truck is titled to you, you can keep it.

Business loans are often personally guaranteed and as a general rule, the person making the guarantee can discharge these debts in a bankruptcy. However, your ownership in the business could be at risk if you proceed. Many business loans are also guaranteed with collateral, and if this debt did involve collateral, bankruptcy will not protect the collateral from repossession by the lender. Without knowing the value of your vehicle or whether it acts as collateral for the business loan or any other loan, I can't guarantee you will be able to keep it. However, the exemption for your equity in any one vehicle in Nevada is $15,000.

Yes, you can file BK. Look at your State Exemption Laws (you can Google these exemption laws). For example, in Colorado you are allowed to keep a vehicle with $5K equity, $10K if you are 60 or older or are handicapped or have a handicapped dependent. If you use the vehicle in your occupation, you can add another $20k as "tools of the trade". Pay an experienced BK attorney for their opinion. Don't be penny wise and pound foolish!

A personal bankruptcy will discharge your liability on the note. You are entitled to exempt or protect certain assets, including a vehicle within the exemption amounts. Bankruptcy can be used to restructure businesses and to keep assets as well.