Comment by gruez

>you're still personally on the hook for any post-foreclosure deficiency judgment

Depends on the state: https://www.financialsamurai.com/non-recourse-states-walk-aw...

>both by shielding the PE fund from debts and the use of bankruptcy and restructuring of the acquired company to discharge liabilities, including those from litigation.

Who's extending credit to these companies? Individuals can do something similar by declaring bankruptcy. I think banks can be considered sophisticated enough that if they got hosed on a LBO deal, that it's hard to feel sympathy for them.