You are correct that their is some privilege but depending on the situation the clean up / fallout of a failed company can really be quite bad. Many times foun

You are correct that their is some privilege but depending on the situation the clean up / fallout of a failed company can really be quite bad. Many times founders can be left with astronomical debt pretty much guaranteeing bankruptcy being the only way out. Additionally its not unheard for business loans to have a house on the line as collateral. This doesn't mean this is always the situation but is not as rare of a story as one may think.