This study examines investor attention and behavior in the periods leading up to bankruptcy. In particular, we analyze whether companies that are effectively bankrupt or peer companies that are financially distressed but remain solvent receive more investor attention. Using extensive data on the activity recorded on the SEC's EDGAR server, we show that companies that are effectively bankrupt receive substantially more attention from investors prior to declaring bankruptcy than peer companies that are financially distressed but remain solvent. This abnormal level of attention can be observed at least 18 months before bankruptcy. Furthermore, we show that professional investors who pay unusual attention to distressed companies that eventually go bankrupt start selling their respective holdings more than 12 months before these companies declare bankruptcy. As a result, the entire study documents the full process of information gathering and processing and subsequent portfolio choices in the case of imminent bankruptcies.