Company protection in personal bankruptcy.

By way of background, you can file for personal bankruptcy and keep your business active.  Since the corporation is a legal entity different and distinct from its shareholders, the bankruptcy of a shareholder does not affect the corporation.  The bankrupt shareholder's shares in the corporation, however, are an asset of thier bankruptcy estate.  Yet, while the business is a personal asset, it might not have any value to anyone but you. 

While you may know the business has limited value, the Trustee will need to be certain that no value exists; their job is to find the assets that you cannot protect and sell them to pay your creditors.  For valuation purposes the Trustee takes several factors into consideration.  For one thing, many people have small businesses in which the business value is based on the owner's best efforts, meaning your customers have hired you because of your expertise and service.  Some businesses are easier to value.  For example, a doctor's office may have a large patient base and a market might exist; but computer consultants are usually hired for their expertise, and the business value is based purely on the individual.  Additionally, most businesses do not have valuable assets or inventory.  But it is possible that you have some value equipment/machines that are paid for in full.  You must know the value of these assets prior to filing.

As for just how aggressive you creditors will be both during and after bankruptcy (especially regarding any deficiency), many times in a situation such as yours,  the creditors will only pursue the individual personally.  On occasion, a creditor will be very aggressive and try to seize business assets.  For example, if you have a car that is being paid for through the business, then you need to be careful.  An aggressive creditor might try to seize that vehicle.  Do not transfer the vehicle into someone else's name.  Anything done to hinder or delay a creditor claim could be considered fraudulent, and the transfer could be voided.

Additionally, if you have a business credit card and checking accounts with the same bank, then it is possible for the bank to offset (aka take) the money in your checking account to pay the business credit card.

What you need to do now is to consult with a bankruptcy attorney in your area as to all of this.  you can sit down with them and go over all of the specifics of your case.