Bankruptcy of Software Developers
Software developers do not pose much of a problem except for one overriding issue: the ownership in whole or in part of software that they have written. This would normally not pose a significant problem for the small developer or the individual because the liquidation value of software that is not producing sufficient income to keep its developer out of a bankruptcy lawyer's office is often of little actual value. If so, it may well pass throught the bankrutpcy estate or can be purchased back again by the debtor. But the danger in this scenario is the competition, who will have use for the software. The competition can purchase the software from the trustee as well. Depending on what the debtor wishes to accomplish, he should take care to make preparation in advance.