This chapter considers the case for director financial liability standards to "protect creditors" from negligent or opportunistic behaviour by directors in times of financial distress and the positive behavioural effects that liability standards are intended to have in this respect. Nonetheless, whatever the quantum of direct recovery for creditors, liability rules can have important behavioural effects. In part this is through a simple deterrence strategy; making clear to directors that misconduct in times of financial distress can be sanctioned through personal liability should reduce incentives for, and therefore the occurrence of, misbehaviour. Creditors cannot legitimately expect, given the inherent risk in the credit bargain, to obtain privileges in times of financial distress beyond protection against negligence or opportunism. A strictly rule-based approach to creditor protection would be highly likely to suffer from significant "underinclusion" given the varied circumstances in which negligence or opportunism may occur.