If Steven Garcia has invested $555,000 in a privately held family corporation that subsequently declares bankruptcy, the amount he stands to lose depends on the specific circumstances of the bankruptcy and the company's assets and debts.
In a bankruptcy scenario, the losses incurred by an investor like Garcia are typically determined based on the order of priority in which creditors are paid. Secured creditors, such as banks with collateralized loans, are usually paid first from the proceeds of any liquidated assets. After that, unsecured creditors, including investors, are paid if there are remaining funds.
However, it's important to note that the distribution of funds in bankruptcy can vary widely, and there is no guaranteed amount that Garcia would recover. In many cases, unsecured creditors may not receive a full or substantial repayment, and there is a possibility that Garcia may lose the entirety of his investment. The actual amount Garcia stands to lose would depend on the bankruptcy proceedings, the company's financial situation, and any agreements or arrangements made during the process.