0
Depends on the situation and the type of BK....but generally its fair to say the creditors do...and the reason for the BK frequently being there aren't enough to pay what they owe...the additional amount owed is discharged. The assets may come over by sale, transfer or even giving the creditors stock in a company that owns the assets.
What else can I help you with?
What risk do stockholders face if a corporation goes bankrupt?
Stockholders face the risk of losing their investment if a corporation goes bankrupt.
Who is responsible for a corporation debt?
the corporation
What happens to a player's properties if they go bankrupt in Monopoly?
When a player goes bankrupt in Monopoly, all of their properties and assets are returned to the bank.
Who is responsible for a corporation?
The corporation is responsible for the corporation's debt. Normally, there is a financial officer who pays the bills. If the corporation fails and goes bankrupt, people simply do not get paid. If the company is bankrupt and there is money, a judge appoints someone to pay according to a plan.
Can you explain how SIPC works in protecting investors' assets?
The Securities Investor Protection Corporation (SIPC) protects investors' assets in case a brokerage firm fails. SIPC provides up to 500,000 in coverage for securities and cash held by the firm. This coverage helps investors recover their assets if the brokerage firm goes bankrupt or engages in fraudulent activities.
Can assets be siezed if a trustee of an revocable living trust goes bankrupt?
Probably not. The trustee and the Trust are entirely different things.
What are the major advantages and disadvantages of the corporate organization?
The major advantage is the fact that a corporation is a legal entity. This means that if the corporation goes bankrupt or incurs a lot of debt the creditors can only go after the assets of the corporation, not the personal assets of its owners (i.e. the stockholders). This isn't true of a sole proprietorship or a partnership; if these go under and you own a piece of the business, your house, car, bank account, etc. are all fair game. The major disadvantage of a corporation is taxes. Corporate tax rates tend to be much higher than for partnerships or sole proprietorships.
What happens when a business goes bankrupt?
When a business goes bankrupt, it means that it is unable to pay its debts and obligations. The business may be forced to close down, its assets may be sold to pay off creditors, and it may be subject to legal proceedings to resolve its financial issues.
What happens when you bankrupt someone in Monopoly and they can no longer pay their debts?
When a player in Monopoly goes bankrupt and cannot pay their debts, they are eliminated from the game. Their properties and assets are usually given to the player they owe money to or returned to the bank.
What happens to shareholders when a company goes bankrupt?
When a company goes bankrupt, shareholders may lose the value of their investment as the company's assets are used to pay off debts to creditors. Shareholders are typically last in line to receive any remaining funds after creditors and bondholders are paid.
What happens to a bank loan when a corporation goes bankrupt?
The company still has to pay it off, it might even just rest on the owner's, or the person who took it out, hands.
What will bankrupt solve?
When one goes bankrupt, one's debts are cancelled.
