Sole Proprietorship Liability: What Now?

Questioner

Dear reader(s). I have a question about the legal liability of a sole proprietorship. If my company (a sole proprietorship) cannot meet financial obligations then I am also personally liable. What if my company is declared bankrupt and I start a new company afterwards? Can and/or can any creditors then again claim my income from this company and/or private assets? And what can any creditors still demand in private matters if my company goes bankrupt and I can no longer do anything (for example, if I end up on welfare)? Please advise and kind regards,

Lawyer

You remain liable for all debts of your company with your private assets. After your bankruptcy, your creditors can always call on you again. If they do so within 5 years after the last claim, the debts will not expire. Your creditor may also recover the debt from a new company that you set up after the bankruptcy or from any new private assets. In short, if you have persistent creditor(s), you will not get rid of your debts. You will only be debt-free once you have paid off all your debts or have been admitted to the WSNP.