Questions tagged [bankruptcy]

relating to organizations or individuals running out of cash flows. Additional context specific tags may be used as appropriate.

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1answer
38 views

Yes Bank Vs State Bank Of India [closed]

I recently heard the news of Yes Bank Failure. When I compared the some of the Financial Ratios of the Yes Bank with that Of SBI then Yes Bank seemed to perform better(also better than many of the ...
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0answers
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Where are business obligations, like a property lease, on the debt seniority ladder?

Consider the perspective of a REIT. If one of the REITs tenants files for bankruptcy, does the REIT get paid first to satisfy the terms of the lease or do the tenant's bond holders get paid first? I'...
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1answer
8k views

My friend cosigned for a defaulted loan. Should he declare Chapter 7 bankruptcy?

Background: My friend Abe co-signed an auto loan for about $25k with his "friend" Bella, in the USA state of Maryland, about 4-5 months ago. The car was for Bella's use. The deal was that Bella would ...
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1answer
101 views

Index fund's assets actual owner

Let's suppose you buy a index fund issued by some financial firm. In that case, who is the actual owner of the fund's underlying shares, you or the financial firm? In case of the answer to the above ...
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0answers
26 views

Calculate altman z score

I am trying to calculate Altman Zscore. I have following columns Asset Turnover Ratio Return on Assets Return on Equity Current Ratio Quick Ratio Cash to Current Liabilities Inventory Turnover ...
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3answers
7k views

How to protect an employee's wages before the company declares bankruptcy? [duplicate]

I work for a company which is behind on my salary. The company might file for bankruptcy: how do I claim my salary before then? This question is different from other postings. We are discussing how ...
2
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1answer
281 views

Clarification on getting paid from a company which filed for Bankruptcy?

I work as an employee for a contracting firm which supplies IT labor resources for their (or) to another contracting firm's clients. As there is a 45 day holding period for the contract firm which i'...
3
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1answer
219 views

What happens to a company when its parent goes bankrupt?

Among the subsidiaries of the now defunct Thomas Cook Group, some ceased operation together with their parent (e.g. Airtours), while others continue to operate (e.g. Balearics). How exactly is the ...
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0answers
92 views

(Hypothetical) Write off Loss of Cash due to bankruptcy of financial institution

In both Canada and the United States, how do we write off the loss due to bankruptcy of the financial institution in excess of deposit insurance on the tax return for the tax year when the bankruptcy ...
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2answers
388 views

What does “burned through $300 million mean”?

In the book "Antifragility of Islamic Finance: The Risk-Sharing Alternative" by Umar Rafi and Abbas Mirakhor, on page 101 I read the following line: "Pets.com, the poster-child company of the dot ...
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1answer
47 views

How would I calculate my taxes for a post-Chapter-11 distribution?

Situation: I held N shares of a company "JUNK", average cost basis $C/share. Cost basis for the shares was $C * N. Some time later, company "JUNK" filed for Chapter 11 bankruptcy. At this point, the ...
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1answer
229 views

Chinese Brother-in-Law in Debt Trouble - What can Chinese Citizens do to Manage?

My brother in law built up a large amount of gambling debt two years ago. I guess in an attempt to save face, he hid a portion - 75,000¥ ($11,187) from his family thinking he could pay it off himself. ...
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2answers
186 views

When is the best time to begin the settlement discussion with credit cards to avoid bankruptcy?

I've read a variety of strategies on timing on settlement discussions with credit cards. The common one seems to be to try after first late payment, and then try again after the next. I have not had ...
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2answers
265 views

Is there a way to simulate credit score for settlement vs bankruptcy?

I'm considering either settlement or filing a Chapter 7 Bankruptcy for about $110k in credit card debt. However, it seems like both options will stay on your record for 10 years and also decimate ...
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2answers
456 views

Declaring bankruptcy vs just not paying off large credit card debts (no home, no car or large assets owned)

So I'm considering just letting my credit card debts go unpaid till they close. (The goal was to find some way to pay it off but I need to consider the worst possible case) The reason why I'm ...
3
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1answer
107 views

How/when to take loss in private company that re-orgs post-Chapter 11 and converts to new/fewer shares?

My wife's company is private. We bought 60 shares x $1k/share 5+ years ago. This past year they (OldCo) went Chapter 11 bankrupt re-emerged from bankruptcy as a new LLC (NewLlc) "There were assets ...
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8answers
21k views

Can I become debt free or should I file for bankruptcy? How do I manage my debt and finances?

I am 35 years old, single, and live in the US. My income is 78K to 80K after taxes and insurance. I pay $1,500 for rent+utilities, $150 for phone bill, $450 for auto loan, $300 for auto insurance (...
3
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1answer
122 views

Holding shares of company filing for bankruptcy

I own few shares of PG&E and recently got an intimation from my broker regarding the chapter 11 bankruptcy filing by PG&E. However, I also see the stock price going up for some reason. I ...
2
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1answer
98 views

How to learn status of bankruptcy?

I was a contractor for a company that went bankrupt seven months ago. I am still owed money. I have not heard from the bankruptcy lawyers. How can I find out the status of the bankruptcy, who the ...
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1answer
80 views

Online website for filling out bankruptcy paperwork? [closed]

There are many online tax websites (e.g., TurboTax), but are there similar websites for helping one fill out the paperwork for bankruptcy?
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3answers
311 views

How can PG&E intend to go thru Chapter 11 Bankrupcy on January 29th before lawsuits even find them financially liable from recent California fires?

PG&E intends to file for bankruptcy on January 29th. They state it is largely due to the estimated $30 billion in liabilities from the recent disasters, fire suppression costs, and attorney fees. ...
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7answers
12k views

What happens to the shareholders when a public company declares bankruptcy?

If you are a shareholder of a public company and the company goes bankrupt, what would happen to your share? Does the share still represent your holding in the company? And if the company goes out of ...
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1answer
6k views

How urgent is it to close put options when a company enters bankruptcy? How likely is it to have trading halted?

I own Jan-2020 put options on a company in bankruptcy, but the stock is trading between .25 and .50 and my limit orders to sell those puts are not getting filled yet. The trading on the shares has ...
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2answers
150 views

Chances to get back money from a bankrupt company?

Recently, I bought a ticket through my debit card for an airlines that got bankrupt a few weeks later (Cobalt Air). Anyone with a similar experience and managed to get their money back? Or what are ...
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0answers
394 views

What to do when my co-signer files Chapter 7?

I have an open auto loan and have finally caught my payments back up. My mother is overwhelmed by her debt and is the co-signer on the loan. She has officially filed for chapter 7 bankruptcy and told ...
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0answers
368 views

Is NDC.org a legitimate way to track Chapter 13 cases?

I was told by the secretary of the lawfirm that's handling my Chapter 13 case to go to ndc.org to find out details such as how many remaining payments I have. I know a thing or two about technology, ...
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1answer
334 views

Can I get severance pay in bankruptcy settlement?

This is a followup to What happens to contractors when employer goes bankrupt?. When I signed with that company as a contractor, my contract promised me 10 days notice before letting me go. ...
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0answers
24 views

Withholding Agents in Canada

Hello everyone I had a quick question about Canadian banks. I have my investment accounts with my bank (big 5 bank). Legally when I buy the stocks they hold them for me, until I decide to sell them. ...
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2answers
621 views

What happens to contractors when employer goes bankrupt?

The U.S. company at which I was a contractor has closed its doors and laid off all employees. I read in the news that all its assets were bought by another company. All regular employees were paid up ...
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2answers
266 views

Is there an example of a company declaring bankruptcy . . . then discovering it's not bankrupt after all?

Does this happen? For example, an oil company files, thinking it just doesn't have enough assets to cover its liabilities, then shortly afterwards, it makes a big new discovery, or the price of oil ...
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2answers
389 views

Home loan discharged in bankruptcy - distribution of funds from sale

My ex-wife was the primary borrower on a home loan with me as co-borrower. After our divorce was finalized she filed for bankruptcy and the loan was discharged. However, I remained in the home and ...
85
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10answers
27k views

I am an EU resident being contacted about stock I own in a defunct company by a supposedly US based lawyer, is this a scam?

I am based in the EU, so I have very little knowledge of how the US legal system works. I have been contacted by a "law firm" in the US about a financial issue: a company in which I own a small ...
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5answers
5k views

Options for paying for a nonreturnable leased vehicle

Late last year, my girlfriend's car was stolen and subsequently destroyed. This car was a leased vehicle. For reasons beyond her control‡, the insurance had lapsed a few months prior. The ...
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1answer
143 views

How do I determine if another party has filed me for bankruptcy in Australia?

I understand here in Australia, company can file for bankruptcy on your behalf or without you even knowing if you owe them money over $5000. How do I do a “free” search on the bankruptcy site. I need ...
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1answer
172 views

Is it possible to establish a new relationship with a creditor after bankruptcy?

I'm usually pretty good at answering money questions for my friends but this one has me stumped. First, a little background A few years ago, a friend of mine had great credit (low balances, great ...
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1answer
205 views

How much can owning part of a liquidated company affects my credit score?

As part of my employee compensation when I started working for a small startup, I got 5% of the shares. The company didn't make it and the founder wrote me to tell me that he's going to liquidate it, ...
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1answer
275 views

Savings account versus corporate bond

I am looking at buying a bank corporate bond instead of placing money into a savings account. Say I buy a 2 year maturity corporate bond, that yields exactly 2% per year (in terms of yield to ...
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1answer
104 views

Approximation of equity value for company in default [closed]

I want to come up with an estimate for where the share price of a company may end up in a bankruptcy/event of default. What is a commonly-used rule of thumb for this? I know it will vary greatly from ...
0
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1answer
126 views

Bankruptcy with liability and credit

Suppose you took a loan and have to to pay it off uniformly. You made more money than you initially thought when you took the loan and have yet to pay 50 000 $ off, but have 20 000 $ credit on an ...
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4answers
1k views

Borrowing 100k, paying it to someone and then declaring bankruptcy

What happens if you borrow 100-500k in Australia, pay it to a friend and then declare bankruptcy shortly after? Would your friend need to pay back the bank? Would this be fraud? What would happen if ...
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2answers
188 views

How could this sort of bankruptcy fraud be caught?

Somebody I met claims that some 'shady' business owners out there can create a company with the purpose of paying for an expensive service - then make that company file for bankruptcy to avoid paying ...
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0answers
147 views

Co-owning a house, what happens during chapter 7 bankruptcy?

My mother-in-law is considering filing chapter 7 for her small business. She has about $100,000 debt. Her only asset is a house that she and my wife bought as joint-tenant worth about $700,000 with ...
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1answer
1k views

Are assets lost in a bankruptcy valued at the time of loss, or according to current value?

For the purposes of claiming a casualty loss in tax filings, can stocks be valued at their current par or is their value only what it was at the time of the loss? My situation is that I have stock ...
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2answers
511 views

Someone please help with my credit situation

I sincerely hope someone can help. My credit score is ridiculously low. It's 538. My payment history is 98%. I do have a couple collection items...but my credit has been way higher...around 660, with ...
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4answers
7k views

Opportunity to buy Illinois bonds that can never default?

Today Illinois bonds were downgraded to 1 above junk. The article. Citation from article: Despite the lack of a budget, Illinois has continued to cover payments due on its bonds, and, like other ...
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1answer
158 views

Chapter 7 Bankruptcy IRS Debit 7 Capital Loss

I have a capital gains loss of $250K and an IRS debt of $200K, this happened through series of mistakes. Explained in detail here. My question is I was told that filing for Chapter 7 bankruptcy will ...
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3answers
3k views

What happens to investors' money in SPY ETF if State Street becomes bankrupt?

SPY is one of the most popular ETF tracking S&P500 index. If the ETF issuer State Street Global Advisors becomes bankrupt in a black swan event, what happens to investors' money? Is the money 100% ...
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1answer
127 views

Continued Paying For Home After Bankruptcy Discharged Debt - Can Someone Regain Responsibility?

My mother declared bankruptcy a few years ago, and all of her debts were discharged, including a car that was repossessed, and a house, which she continued making payments on (Was never behind), even ...
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3answers
2k views

What drives the stock of bankrupt companies?

What drives the stock of bankrupt companies? For example: Energy Company SunEdison (SUNE) filed for bankruptcy in early 2016, with debt exceeding assets by at least $1 Billion USD. Throughout the ...
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2answers
128 views

Is there a reliable way to find, if a stock or company is heading bankruptcy?

Bankruptcy in the stock market is not uncommon. Suddenly, stocks declare bankruptcy, trapping millions of investors. How can I avoid buying the stock of a company which is heading towards bankruptcy?