Sole Proprietorship

• A personal bankruptcy is a business bankruptcy in the case of a sole proprietorship. All business assets are held in the owner's name. All of these assets will come under the control of the bankruptcy trustee.
  
  

Partnership

• Partnerships are the same as a sole proprietorship, with the exception that the business is owned by more than one individual. Either partner declaring a bankruptcy will cause the business assets to come under the control of the bankruptcy trustee.
  
  

Corporations

• The bankruptcy of a shareholder in a corporation generally does not affect the corporation, because the shares are considered the personal property of the shareholder. What this means is that the trustee may take control of the shares as part of the bankruptcy estate, but will generally not interfere with an operating corporation. However, the trustee may want you to buy back the shares from the estate if they are not exempt. If you can't do this, the trustee can force the corporation to be liquidated.