Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - If I have a LLC and declare Bankruptcy who takes the loss? - It depends - unfortunately I do not have enough information about your specific case. br br Your LLC is a legally separate entity from you, so in theory if your LLC declares bankruptcy the LLC and the LLC's creditors take the hit. br br However, it is not uncommon for a creditor to require the principals of the LLC to personally guarantee a loan or a line of credit. If you have personally guaranteed a line of credit, you will remain legally responsible for those unless you also declare bankruptcy.