Successor liability is a doctrine in the law that says when a new company is created from the remains of an old company the new company is subject to all of the debts and liabilities of the old company. Generally if a company is selling its assets to a new buyer they’re only buying assets, not debts. But if a company has too much debt and decides to close its doors and start a new company with more or less the same owners, the same business, and the same employees then the courts may hold that this is really the same company and the debts will carry over to the new company.