Debt Doesn't Disappear When Companies Fold: A Lesson in Corporate Responsibility When a company goes out of business, its problems are often assumed to disappear along with it.
This assumption is precisely the problem for those who've taken on debt to companies facing bankruptcy or liquidation.
It's tempting to think that individuals like Ronald, who borrowed $10,000 from a local construction company now on the brink of collapse, are off the hook. Experts agree that this isn't how it works.