Creditors get left out in the cold in a chapter 7 filing, but not chapter 11, as TooJays has filed. However, the other side of that coin is that only 25% of companies that file chapter 11 survive. A lot of them simply convert to chapter 7 and liquidate all assets if the debt load becomes more than their revenue can support. In that situation, certain creditors would receive a portion of the liquidated asset value. This is what happens when the government forces businesses to close and shuts down a 20 trillion dollar economy. Those of you who were in favor, said you were willing to pay the price, and so you shall. And so shall your children and your grandchildren. This is just the tip of the iceberg.
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