Charging Orders for Sole Proprietorships

The sole proprietorship is not recognized as an entity for any purpose and, accordingly, cannot own any property. Thus, the sole proprietor's business assets can always be foreclosed on and liquidated by his personal creditors, because the assets are really personal assets.

In this case, personal debt liability is the same as business debt liability.

This is yet another reason why the small business owner should avoid operating in the form of a general partnership or sole proprietorship.