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I suppose there's something about this in FAQs, but I'm lazy:

If a company declares ch. 11, at what point in the process can a shareholder claim the stock is worthless and take a tax loss? (This company is now in ch. 11, but final disposition concerning possible buy-out, unlikely refinancing, or conversion to ch. 7 will probably take until after Jan. 1.)

I know one piece of advice is to sell, but that costs a brokerage fee. Also, some investors in this company own it as a Private Placement and can't sell. (Long, depressing story.)

What happens if the ch. 11 process later results in some kind of return, after you've taken a tax loss?

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