4 ms·
The government (taxes), secured creditors and banks are paid out first. Then employees (pension funds etc) come next. There just isn't ever anything left for cu
by gaius 8y ago
The government (taxes), secured creditors and banks are paid out first. Then employees (pension funds etc) come next. There just isn't ever anything left for customers.
Generally, the receivers (bankruptcy administrators, lawyers, accountants, etc) are paid first. Mysteriously their fees always seem to add up to exactly however much money was left, and there is nothing left for anyone else.
- makomk 8y agoI believe there even have been some issues with UK banks driving successful businesses into bankruptcy by pulling their line of credit so they can make money administrating the bankruptcy.
- sandworm101 8y agoNo mystery. They get together and dont ask for more than they know is availible. That speeds things up. They still take a loss, generally, but just arent showing that in thier claims.