Muscletech? Are you even aware that Muscletech is not a company, that it is owned by Iovate. How about checking that out before you say that Muscletech filed for bankruptcy.
it might not be a publicly traded company, but it's most certainly incorporated. Corporations are to protect individuals from liability. If I was incorporated, you could sue the corporation for all of its assets, but not for my personal assets, such as my house.
also, both individuals and companies can file for bankruptcy protection. doing so prevents creditors from taking your assets before you can reorganize. It also allows you to get out of contracts.