After identifying all assets of the business, you can go about trying to sell them.
This means that you are allowed to keep certain property up to a certain amount of value as determined by either federal or state law.
The federal bankruptcy code includes a specific list of exemptions.
Creditors will usually accept less money rather than go through the expense of suing you or risk getting paid even less if you file bankruptcy.
However, be aware that settling a debt for less than its full balance may result in additional tax liability if the IRS considers it income.
However, you cannot give away or sell the assets for significantly below market value.