Person owns a business. They take out a business loan in the business name but signs as the personal guarantor. The guarantor will be discharged from the their personal liability, but the entity/primary borrower will still owe the money. If the business is on-going then you need to look to the loan documents under events of default, as a BK by a guarantor could constitute a default under the loan agreement and accelerate the debt. Of course if the business is insolvent and shutting down, so what.