.... You just go bankrupt. That's it. And if you do it right YOU don't go bankrupt the business goes bankrupt. Make an LLC and take all business transactions from that then when it goes under you aren't fully liable. You might take a credit hit but that's it you'll be fine. The real risk is your time and effort and a small monetary risk that you'll lose some money. I guarantee you didn't save hundreda of thousands to start a business. You took a loan. Bankruptcy. Easy.