Bankruptcy Lawyer North Salt Lake UT

Bankruptcy Attorney North Salt Lake Utah

Personal Bankruptcy Lawyer Near North Salt Lake UT

Ascent Law LLC (801) 676-5506 Free Consultation

Bankruptcy Attorney North Salt Lake Utah
Bankruptcy Attorney North Salt Lake Utah

Investing in Bankruptcy Due to the Stock Price

Investors can find out if a company is in danger of bankruptcy by checking the company’s ratings with Standard & Poor’s, or Moody’s. These companies will also give a rough idea of what common stockholders will get if the company files for bankruptcy. For example, if the company were to file for bankruptcy and you own a $500 share, you would receive just $500.

Unsecured creditors get paid before all other lenders or investors

When a company goes bankrupt, the first thing that is paid is the creditors who are owed money. In some cases, this means employees, vendors, and suppliers. In large bankruptcy cases, thousands of unsecured creditors may be included. Each of these creditors has a certain rate of recovery on pre-petition claims, and the trading price of an unsecured bond may give them an idea of how much they can expect to get in compensation.

The next step in a bankruptcy case is determining the priority of unsecured creditors. The order of priority can be complicated. The order in which creditors are paid will depend on the size of their respective debts. The first priority tier gets paid first, and those in the lowest tier will receive a pro-rata payment. However, if the company has very little money, the creditors in this tier will not get paid until the secured creditors do.

Chapter 11 bankruptcy

Buying the common stock of a Chapter 11 bankruptcy company is extremely risky and can lead to a significant financial loss. In bankruptcy, creditors and bondholders take over the ownership of a company’s shares. Usually, common stockholders lose their ownership stake and instead receive stock in the reorganized company that is worth less than the original price.

After a company files for Chapter 11 bankruptcy, it must be reformed as a new entity. During this process, its assets are transferred to the new entity. The old company’s stock shares are canceled. These stock shares become worthless paper.

Investing in bankrupt companies

Investing in bankrupt companies due to the stock price is not illegal, but it should be done with great caution. It is speculative and should be done only with a small part of your portfolio if any. Even if you do decide to invest, make sure you understand that you are risking total loss. A common shareholder has no say in what happens to his or her stock, so it is important to understand the risks before making an investment.

Bankrupt companies usually file for Chapter 7 bankruptcy protection. Chapter 7 bankruptcy protection means that the company will cease operations and all assets will be distributed to all debtors.

If you have any questions, you can get a free consultation with Ascent Law LLC:

Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506

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Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506
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North Salt Lake, Utah

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North Salt Lake, Utah
North Salt Lake City Hall, completed in 2010

North Salt Lake City Hall, completed in 2010
Location in Davis County and the state of Utah

Location in Davis County and the state of Utah
Coordinates: 40°50′45″N 111°54′25″WCoordinates40°50′45″N 111°54′25″W
Country United States
State Utah
County Davis
Incorporated 1946
Named for Great Salt Lake

 • Total 8.51 sq mi (22.04 km2)
 • Land 8.47 sq mi (21.93 km2)
 • Water 0.04 sq mi (0.12 km2)

4,337 ft (1,322 m)

 • Total 16,322
 • Estimate 

 • Density 2,474.37/sq mi (955.33/km2)
Time zone UTC-7 (Mountain (MST))
 • Summer (DST) UTC-6 (MDT)
ZIP code
Area code 385, 801
FIPS code 49-55210[4]
GNIS feature ID 1443971[2]

North Salt Lake is a city in Davis CountyUtah, United States. It is part of the OgdenClearfield, Utah Metropolitan Statistical Area. The population was 16,322 at the 2010 census,[5] which had risen to an estimated 20,948 as of 2019.[6]

The city is often casually known as North Salt Lake City as it shares a municipal boundary with Salt Lake City to the south, though the city’s actual corporate name is “The City of North Salt Lake”. The error also has been solidified with the Federal Communications Commission, which has radio station KALL (700) officially licensed to “North Salt Lake City”, though for all intents and purposes that station serves the Salt Lake City market in general.

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