There are tax implications when satisfying a debt obligation for less than what was owed. (getoutofdebt.org)
You will also need to personally guarantee your loan, which makes you responsible for satisfying the debt if your business is unable to. (valuepenguin.com)
Still, bankruptcy is a legal procedure that offers a fresh start for people who have gotten into financial difficulty and can't satisfy their debts. (consumer.ftc.gov)