Tag Archives: liability
What Chapter 11 Filers Should Know About Personal Liability
Unless a business is established as a sole proprietorship or general partnership, owners typically can avoid personal liability for most business debts. If a corporation or limited liability company (LLC) files a Chapter 11 bankruptcy, owners generally do not put their personal assets at risk. There are exceptions, however. Personal liability may still attach in […]
Can a Partnership Seek Bankruptcy While Its Partners Don’t?
Like any business entity, a partnership may seek bankruptcy protection when it is unable to pay its debts and risks insolvency. However, unlike a corporation, a partnership does not shield its equity owners from liability to creditors. So there are special issues that arise when the entity itself files for relief but the partners themselves […]
