Well, you're not exactly wrong -- the statutory priority scheme is kind of complicated. Secured creditors and attorneys (of course
) are usually in the best positions. However, employees are toward the top of the pile in terms of getting $$$, I guess because congress at least *pretended* to care about them when making the law.
As a side note, it is very common for businesses to file "prepackaged" Chapter 11 cases, where they treat creditors of different classes differently, and as long as most creditors approve what is happening (and the judge agrees, of course) some creditors may end up getting a bad deal -- usually the unsecured creditors, like suppliers who didn't get paid up front.
Bankruptcy is a universe unto itself. Geez...sorry for all the boring details.