And you won't have to pay the costs of bankruptcy (court and lawyers' fees).
So if you feel an ethical duty to creditors and want to see that they receive as much money as possible, this may be the way to go.
On the other hand, if you are personally liable for some business debts because you signed some personal guarantees or because you're a sole proprietor or a partner, you'll absolutely need to get all of your creditors to settle with you and release your from the debts.
If even one creditor refuses to release you from a debt you're personally liable for, all of your other settlements may be for naught, if the creditor sues you and takes your property or you end up having to file for bankruptcy anyway.
For instance, if you don't file for personal bankruptcy, you can choose to first pay the debts for which you are personally liable, such as: You might even be able to buy the business's assets back yourself—something you might want to do if you are planning to start up a new business after the liquidation.
You can simply close the business, sell its assets, and pay your creditors on a pro rata basis until the business's cash is exhausted.If you are sued, you'll at least have to file a response in court pointing out that you aren't personally liable for the debt, and you may have to hire a lawyer or appear in court.