what happens if a company that owes me money goes bankrupt?

Answer 1

Let's suppose they owe $1 million and they have $50,000 in assets.

They hire a lawyer for $30,000 to handle the bankruptcy, which leaves $20,000 vs. $1m in debt.

Two cents on the dollar? Five cents on the dollar?

I assume that you do not have "secured" debt. If so, you get first dibs.

For small companies you can argue that the corporation is really a sham. The owner ran it like it was his personal piggy bank. If you "pierce the corporate veil" you can try to collect from his personal wealth, such as a house or car.

For big companies, like Enron, investigative agencies might learn that co-conspirators like Arthur Andersen accounting and consulting services, shredded documents.

Can you get paid? Doubtful, but they might settle out of court.

Answer 2

Kiss it goodbye.