How do bankruptcy attorneys get paid?
In: Economics
Bankruptcy does not mean the bankrupt person or company has no money or assets. It means they’re no longer able to pay their debts as they become due.
A company that does not have the liquid cash to pay their creditors might still have three million dollars worth of company assets. During the process of bankruptcy an insolvency trustee would take control of those assets and sell them to satisfy the companies creditors.
The lawyer will get paid out of money from those assets.
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