When a corporation files for Bankruptcy who is responsible?
Tags: bankruptcy, ceo, chapter 11, chapter 7, federal government, liquidation, money, private investors, stockholders, types of bankruptcies
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on Sunday, April 11th, 2010 at 3:20 pm and is filed under Bankruptcy Files.
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April 11th, 2010 at 3:22 pm
All assets are converted to Cash and the Cash is distributed according to the legal priorities -
i.e. secured creditors first etc.
If there is no Cash left over for the shareholders – they are out of luck. The whole thing is handled by a Court appointed Receiver.
April 11th, 2010 at 3:22 pm
most bigger companies usually have insurance for these kinds of things. If they do have any real property, it will be liquidated and any debtors will receive a portioned payback, usually nothing greater than 20 cents on the dollar. But then the debtor can write off the loss at the end of the year.
April 11th, 2010 at 3:22 pm
The most appropriate site for your question –
http://www.usalegalcare.com/Bankruptcy.htm
Trust me its good