Can a seller still be personally on the hook for debts after their company goes bankrupt?

Yes, often. A corporation's bankruptcy under federal insolvency law generally deals with the corporation's own debts, but it doesn't automatically erase an individual owner's separate, personal obligations. If the owner personally guaranteed a business loan or a commercial lease, or is personally liable for certain statutory debts, those obligations can survive the company's bankruptcy, and the creditor or lender can still pursue the individual directly for any shortfall.

This matters to a buyer mainly indirectly rather than directly, since it doesn't create liability for you as the purchaser of the business's assets. But it helps explain the dynamics of the deal: a seller with significant personal exposure on the company's debts may be especially motivated to see a sale go through, and a lender holding a personal guarantee from the owner is often closely involved in reviewing or approving any sale of the assets securing that debt. Understanding whether the seller has this kind of personal exposure can help you anticipate who else is really at the table.