What Happens When a Company You Invested In Goes Bankrupt
Understanding Bankruptcy Basics: When a company goes bankrupt, it means it can no longer pay its debts. This usually happens after long periods of losses, poor management, or changes in the market. In the United States, companies often file for Chapter 7 or Chapter 11 bankruptcy. Chapter 7 means the company will shut down and sell its assets. Chapter 11 allows the company to reorganize and try to stay in business.