Shame this could make Clara Lara or Bill ill (4,2,4)
I believe the answer is:
loss of face
'shame this could make clara lara' is the definition.
I don't know anything about this answer so I cannot judge whether it can be defined by this definition.
'bill ill' is the wordplay.
I cannot really understand how this works, but
'bill' could be 'ac' (abbreviation for account) and 'ac' is found within the answer.
'ill' could be 'off' (off can mean unwell or ill) and 'off' is found within the answer.
This explanation may well be incorrect...
'or' acts as a link.
(Another definition for loss of face that I've seen is " Humiliation".)