When a company files for bankruptcy, the company may be able to get rid of certain debt obligations. However, certain debt obligations will likely stay on the books and must be paid off.

If the company does not have enough assets to cover the debts, then the owners may have to use their personal assets to pay off the debts. This situations usually does not arise in corporations, in which the stockholders personal assets are protected. 

However, if the company is a partnership or sole-proprietorship, then some or all of the owners may be forced to use their personal assets to pay off the company's debts. 

If your company is overloaded with debt obligations and considering filing for bankrupty, contact the Austin bankruptcy lawyers of Slater Kennon LLP, at 512-338-1100.