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In the previous video, we discussed a scenario in which a company could not fulfill its debt obligations and went bankrupt. The bankruptcy court decided to liquidate the company's assets, as it was deemed impractical to continue operations. We learned that debt holders are prioritized over equity holders, meaning they get paid first. If there are insufficient funds to cover all debts, equity holders receive nothing. This process is known as Chapter 7 bankruptcy, which primarily pertains to corporate entities. The discussion focused on the association most people have with bankruptcy, often visualizing the company's disappearance as a result.