FYI: Shorting the stock of a company that goes bankrupt is like winning the lottery. The money you receive for shorting the stock is all yours, though there might be some delay in freeing it from the broker's grip -- it holds the money as collateral until it writes off the loan. You'll owe capital gains tax on your profit unless you shorted the stock within an individual retirement account. finance.zacks.com/happen-short-stocks-bankruptcy-8444.html