Insolvency filing -business loss

My fathers' business had severe loss recently ( was all good before) and he lost all our money in it..he had borrowed money from many different ppl inside and outside family..they are all now shouting and asking for their money to him..and no assets we have now..so we had to file insolvency and they are again angry asking how can we file a case and what will happen to their money as they got it from different people which is acceptable, but we don't have any other options left..and this is stressing our family out..is it right decision or how can we overcome this ..he is old as well so can't work and I'm the only son with no more assets , have to consider my wife and children as well who are also affected becoz of this

I'm worried about my father but at the same time feel like we are cheating friends and family as well who gave money ..feels like everythinh is goneee