There are many options stakeholders have because there are various different ones when a business decides to file for bankruptcy. When a business liquidates or reorganises, there will be an order for how gained profit is dispersed. The creditors that are first in line are mostly bondholders and secured creditors. This is because with secured loans they have some type of collateral attached, such as a mortgage or company assets this will cause them to be paid off first. Bondholders that are holding on to a business' debt have the same routine.
Because they take the most liability, stakeholders and unsecured creditors struggle with getting back any money when a business files for bankruptcy. Chapter 7 bankruptcy laws state company employees will receive a wage of some type after the company becomes liquated. When it comes to Chapter 11 bankruptcy customs arrangements have a chance at happening.