Lawsuit results get priority in bankruptcy court and so are still likely to pay out. The exact order varies by country, type of bankruptcy, and I'm not a lawyer. in general when you are bankrupt there is money just not enough and the courts decide who gets it. That money often exists after selling everything (desks, computers, chairs...) even if there is none now. The courts then decide who gets it, court fees, bankruptcy lawyer fees (if reasonable), banks, then the owners. Often the banks will take the company as a whole and put in new management if the business is otherwise good (think plumbers where the business is likely good but they can fail for bad management, tech companies like this they may give up on)