Looking for information on how reposession ( voluntary - equipment from a small business) can affect or cause a bankruptcy.

Background info : Small business - mulch & trucking company can't make payments on some equipment so it is going back to the dealership. There are 2 outstanding loans - both personal - (1) start up money for company, (2) for a grinder and dyer. Person is worried that the repo will affect his house ( in his and his fathers name ) not used as secirity on either loan.

Wonders if he should go bankrupt and start over - how will this affect credit score versus repossession... and can he get rid of the personal loans in a bankruptcy. Will either of these moves affect the house - never had a mortgage on it - family owned property.

Any help would be greatly appreciated - thanks!

SCS