There is another scenario. Equity investors sometimes get something during a bankruptcy. This is what happened to Hertz. (IIRC Hertz was selling shares to retai

There is another scenario. Equity investors sometimes get something during a bankruptcy. This is what happened to Hertz. (IIRC Hertz was selling shares to retail investors during bankruptcy, the SEC put a stop to it, and then Hertz made a miraculous recovery and it turns out the SEC was really just preventing wholesome capital formation and a win for the little guys.)