# 😔 Bankruptcy

**Published by:** [Let Them Eat Cake](https://paragraph.com/@ltecake/)
**Published on:** 2022-06-21
**URL:** https://paragraph.com/@ltecake/bankruptcy

## Content

TL,DR: In the event of bankruptcy, creditors must get in line Issuer Liquidation / Senior Citizen Hours Like senior citizen hours, where only the seniors can access the grocery store from 7am - 8am, bankruptcy proceedings treat customers differently. The people that have paid their dues deserve first dibs on the goods left in.a store. Financials In the event of a bankruptcy, a company becomes liquidated. First, by satisfying all it’s debt obligations - which means they must pay back any loans. Next, they must sell all remaining assets, and use the money to pay out existing shareholders. Primary creditors have the highest chance of being paid back, so they typically receive the lowest interest on their loans. After creditors (who hold debt), equity holders receive the leftover cash and assets. First in line are the preferred stockholders, followed by, last but not least, the common stockholders.

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