[xyan]

I’m currently working on the part of sole proprietorship of Becker but it doesn’t refer to any bankruptcy problems of this kind of business.

I found the sole proprietor is personally liable for all obligations of the business. I just wanna know that can the sole proprietor choose to liquidate his assets when he becomes bankruptcy? So even though he is liable to all obligations, after choosing liquidation, he may have a fresh start financially by discharging most debts and also retain some living expenses?

[Anonymous]

I'm not totally sure I understand your question. However, keep in mind that if the sole proprietorship goes bankrupt, then the sole proprietor goes bankrupt. I think the rules would be exactly the same if an individual went bankrupt whether they operated a sole proprietorship or not.

Note: There is no separate legal entity when dealing with a sole proprietorship.

[Author]

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