Why Buy Stock If a Company Is to File Bankruptcy?

Tip 1 - Don't Go Broke Buying Bankrupt Stocks

Don't be tricked by bankrupt companies' low stock prices; they're low for a reason.
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Tip 2 - What happens to a company's stocks and bonds when it declares chapter 11 bankruptcy protection?

Filing for chapter 11 bankruptcy protection simply means that a company is on the verge of bankruptcy, but believes that it can once again become successful if it is given an opportunity to reorganize its assets, debts and business affairs. Although the chapter 11 reorganization process is complex and expensive, most companies, if given the choice, prefer chapter 11 to other bankruptcy provisions such as chapter 7 and chapter 13, which cease company operations and lead to the total liquidation of assets to creditors.
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Tip 3 - Corporate Bankruptcy: What Every Investor Should Know - FindLaw

What happens when a public company files for protection under the federal bankruptcy laws? Who protects the interests of investors? Do the old securities have any
Tags: Chapter 11 and Other Reorganizations, Chapter 13 Bankruptcy, Bankruptcy

Tip 4 - Why People Buy Stock in Bankrupt Companies

Ignoring the odds and hoping for leftovers after the debts are paid
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Tip 5 - When Companies Go Bankrupt

What happens when the curtains close? - Bill Mann - None