I have to assume this is a personal BK. A company would be insane to fund an open biz bk. I don't even think the biz can legally do it under bk laws either way.

Personal bk really only has one caveat. You can't really enforce a pg for the debt or the performance. We've done just a few in open 13 and our lawyer has a modified contract removing any language irt personal performance guaranty. Makes it a lot harder to chase somebody who dual processes or shuts you off completely.

Chapt 7's are only open for 3-4 months. If he's almost discharged then it's better to wait. If it's a 13 just see how many payments are left on the plan. The merchant would be better served getting a more traditional MCA than a decline/starter anyways.