I'm trying to understand the bankruptcy process. I've heard conflictin information on here. Anyone able to explain in greater depth?

I bought some MMATQ after they filed for bankruptcy. I did my research and believe they have way more money to distribute during liquidation than the market thinks. However, I'm not clear how this distribution happens.

On here I heard shareholders receive a payout once the bankruptcy is settled as money comes in. A portion of that comes from shorts closing I believe. (stock is going for pretty much $0 right now but shorts are still paying 40% interest rates. So, closing could cause a huge price spike.) But, once the process is finished the shares get canceled so I believe the shorts don't have to close.

Now, I've heard the payout occurs automatically for holding shares. However, the judge of the Nevada bankruptcy court said, "you're not eligible for a payout if you do not file with the court." That deadline has been extended until the end of the year. So, purchased shares after the deadline are not eligible for a payout. I also held some WeWork and the process was automatic for that. Shareholders basically had till shares were canceled to file their paperwork for a claim. However, MMATQ seems different. I believe this is going to be a much longer bankruptcy since all of the insiders are suing each other, and the business is suing financial institutions.

On MMATQ there are no secured lenders, unlike WeWork, so the probability of shareholders getting something is much higher. Shares themselves might be completely worthless by the start of next year, but investors might still receive money from the liquidation process depending on when they purchased. Is filing documents earlier in the process the difference between chapter 7 and chapter 11?