If a corporation liquidates in bankruptcy,creditors may attach the personal assets of the owners of the company.

Question

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One of the main advantages of incorporating is that the owners' personal assets are generally protected from creditors in the event of bankruptcy or other legal action. This is because a corporation is a separate legal entity from its owners, and the liability of the owners is limited to the amount of their investment in the company. Therefore, in the event of bankruptcy, creditors can only go after the assets of the corporation, not the personal assets of the owners, unless the owners have personally guaranteed the debts of the company or engaged in fraudulent behavior.

If a Corporation Liquidates in Bankruptcy,creditors May Attach the Personal