Suppose you own a proprietorship that is serious financial difficulty. the assets of the company are 100,000 but liabilities are 175,000. you also have, however, stock in General Motors worth 200,000. if you file bankruptcy, what amount of personal assets do you stand to lose?

When one file bankruptcy, the balance sheet of the organization declares losses, and in the case of a sole proprietorship, the owner would have to cover the deficit. In this case, assets are 100,000, and liabilities are 175,000. This leaves a deficit of - 75,000. This amount will be paid in a bankruptcy by personal assets, which in this case are the stocks. The proprietor would have to relinquish 75,000 of his or her General Motors stock to ensure the liabilities were covered.