Where does a company’s wealth go if they go bankrupt?

Question

Where does a company’s wealth go if they go bankrupt?

In: 7

Answer 1

A company rarely owns its own “wealth”. Buildings are leased, equipment too. Intellectual property and trade secrets may be the closest thing to wealth. Of course there are other assets like brand awareness and relationships with customers and suppliers.

In the case of a wealth management or brokerage company structures are typically set up by regulators such that assets like shares are shielded from creditors.