If a company files a Chapter 7 liquidation bankruptcy, the company essentially vanishes from existence.
All assets are sold, with the proceeds paid out to creditors.
This publication is available at https://uk/government/publications/claim-money-back-from-a-bankrupt-person-or-company-in-compulsory-liquidation-guidance-for-creditors/claim-money-back-from-a-bankrupt-person-or-company-in-compulsory-liquidation-guidance-for-creditors If you’re owed money, you’re a creditor of the person or company that is in debt to you.
You have various options to try to get your money back, depending on the situation.
An insolvency practitioner (IP) may be appointed later to deal with the assets.
Corporate stock in a liquidation bankruptcy is ultimately worthless, since it represents ownership in a company with no assets that no longer functions as a going concern.
A Chapter 11 bankruptcy, as opposed to a Chapter 7 bankruptcy, does not always result in the liquidation of stock, since the company ultimately emerges from bankruptcy after reorganizing its debt.
However, even in Chapter 11 bankruptcy, most stocks end up worthless.
The best way for a stock to get liquidated, in most investors' eyes, would be when a stock is bought out.