Bankruptcy Info

Types of Bankruptcy: Chapters 7, 11 and 13

Many people believe that going through the process of filing for bankruptcy is a good way to quickly and easily erase all of their debt. While bankruptcy can be a good financial strategy for people with cbankruptcyimageertain kinds of debts, it is important to know some basic facts about bankruptcy before filing. To start, there are three main types of bankruptcy, Chapter 7, 11, and 13. Listed below are what makes these three types of bankruptcy filings different from one another. Continue reading…

Donald Trump Uses Bankruptcy to Become More Successful

Deciding to file bankruptcy can be a very emotionally distraught experience for anyone. Yet this is the time when it is possible through proper restructuring to turn your life or your business around. It is actually quite common for someone contemplating bankruptcy to inquire about how someone like Trump was able to use bankruptcy to become even more successful. This is stunning for mdonaldtrumpost people who have a very limited understanding of how bankruptcies work. Large-scale bankruptcies like his stagger the imagination. Not only was the amount of his bankruptcy huge but even more significantly he used it to come out ahead. Continue reading…

How Many U.S. States are Officially Bankrupt?

united_states_bankruptcy_court

For the last few years, the news regarding the state of the economy in the United States has not been good. The federal government has not managed to have a balanced budget since 2001. Unemployment remains high and Washington politicians continue to argue about all financial matters. Individual states also have many problems. Forty-nine of the fifty states, Vermont being the exception, have legal requirements to keep balanced budgets. Many are finding this difficult if not impossible.

There are sources that argue that as many as 32 states are now financially insolvent. These sources use statistics regarding the amount of funds borrowed by each state from the federal government. Those that are said to have borrowed more than $1 billion include: Continue reading…

Top Bankruptcy Filings of 2012

hostess_bankruptcy_2012The economy, while slowly seeming to improve, is still taking its toll on many people in America, from corporate businesses to individuals alike. Bankruptcies are still at an all-time high and they affect companies and people from every economic stratum. There have been some surprising and quite large bankruptcies during the year 2012, what follows are a brief rundown of some of the biggest or most memorable. Consumer bankruptcies still account for the majority of bankruptcies filed, but corporate bankruptcies are what seem to really capture the public interest.

While there has been an overall decline in the number of bankruptcies, both corporate and individual, in the year 2012, the economy is still far from stable and the numbers of filed bankruptcies are still much higher than what is sustainable for a healthy economy.   The year 2012 has seen countless businesses go under, including the loss of an American icon. Continue reading…

Hooters Owner Files For Bankruptcy

Cornett Hospitality, LLC filed Chapter 11 bankruptcy on November 21, 2012. This was a voluntary bankruptcy filing on the part of Phil Cornett, director of Cornett Hospitality, LLC. Mr.Cornett has operated a number of Hooters, Topeka’s Steakhouses and Max & hooters_bankruptcy_2012Erma’s restaurants, throughout Virginia, in addition to Hooters in West Virginia. It surprised many outsiders, when the business listed 287 creditors and $1,000,001 to $10,000,000 in liabilities during a formal bankruptcy filing. Continue reading…

Hostess Bankruptcy: What Happened To Them?

twinkie_hostess_bankruptcyBankruptcy is rarely an abrupt reality, and Hostess is no exception. The first signs of trouble were brewing in 2004 when Hostess, then called Interstate Bakeries, filed forChapter 11 bankruptcy the first time. A few factors played into the initial financial troubles. One might have been the introduction of new enzymes designed to extend shelf life into many of their products. The new enzymes altered the texture and flavor of the products from their tried-and-true taste. Unpredictable market factors such as low-carbohydrate fad diets and a boost in the popularity of competitors also came into play. Continue reading…

Is the U.S. Really Headed for Bankruptcy?

A household that cannot acquire the funds to repay debts may consider bankruptcy. This helps the household to work through its financial struggles. Businesses of all shapes and sizes pursue bankruptcy when they cannot pay their creditors. They can then restructure in order to make
another attempt at a profitable situation. Even some municipalities, evidenced by fiscalcliff_sammany recent areas in California, enter into bankruptcy when they cannot balance their budgets.

Is the U.S. federal government headed down the same path? Continue reading…

A123 Systems Can Use DIP Funds to Pay Employees

David_Vieau_123systems_bankruptcyWhen A123 Systems, a company that makes lithium batteries for use in automobiles, filed for Chapter 11 bankruptcy in mid-October, employees worried about what this would mean in terms of their jobs. A123 has not said anything regarding layoffs; however, it did receive interim court approval to use part of its $72.5 million financing from Johnson Controls to pay employee wages, salaries and benefits. Continue reading…

Michael Vick Spent $29 million Since Filing for Bankruptcy

Bankruptcy Doesn’t Have to Destroy You Financially

Every American is familiar with Michael Vick’s story on some level. The pro football player has been in hot water for years, most notably for his extensive dog-fighting ring, which has incensed dog lovemichael_vick_files_bankruptcyrs everywhere, and made Vick one of the most hated football players in recent history.

His dog-fighting business did more damage to just his professional and personal reputation, however. After serving prison time for animal cruelty and a host of other charges, Vick was released and placed on a reorganization plan to pay off his creditors–his former team the Atlanta Falcons among them. Since his release, he has earned $31 million playing football, and has spent over $29 million of it. Continue reading…

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