One of the advantages of being a limited partner is that his or her personal assets are protected from business claims. This means that debt collectors for a partnership cannot typically go after a limited partner's assets.

When a partnership files for bankruptcy, this provision typically holds. During bankruptcy filings, a limited partner's personal assets are typically protected creditors. However, in some circumstances, some personal assets may be seized, especially if the personal assets were used for a business purpose. 

If your partnership is considering a bankruptcy filing, contact the Austin commercial bankruptcy lawyers of Slater Kennon LLP, at 512-338-1100.