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Questions tagged [bankruptcy]

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

3
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1answer
78 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 ...
57
votes
8answers
20k 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
votes
1answer
105 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
votes
1answer
94 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 ...
0
votes
1answer
48 views

Online website for filling out bankruptcy paperwork?

There are many online tax websites (e.g., TurboTax), but are there similar websites for helping one fill out the paperwork for bankruptcy?
4
votes
3answers
247 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. ...
24
votes
7answers
9k 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 ...
3
votes
1answer
486 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 ...
-4
votes
5answers
369 views

How can a bank go bust when people don't pay their loans? (since loans are created out of nothing) [closed]

When a bank issues a loan to me, the money is created out of nothing on a computer. It's just a record in a database. It doesn't exist. The bank issuing the loan needs to have reserves at the central ...
0
votes
2answers
120 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 ...
3
votes
0answers
159 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 ...
2
votes
0answers
112 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, ...
2
votes
1answer
254 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. ...
0
votes
0answers
22 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. ...
7
votes
2answers
394 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 ...
2
votes
2answers
245 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 ...
4
votes
2answers
355 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 ...
86
votes
10answers
25k 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 ...
24
votes
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 ...
3
votes
1answer
121 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 ...
-3
votes
1answer
181 views

How to create my own fractional-reserve bank? [closed]

How can I create my own fractional-reserve bank to fund my companies? I want to do it to avoid paying interests to others, in addition to advantages of getting (a lot of) loans to create more ...
3
votes
1answer
159 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 ...
1
vote
1answer
196 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, ...
8
votes
1answer
266 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 ...
0
votes
1answer
82 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
votes
1answer
109 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 ...
1
vote
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 ...
1
vote
2answers
168 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 ...
2
votes
0answers
139 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 ...
20
votes
1answer
930 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 ...
1
vote
2answers
401 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 ...
33
votes
4answers
6k 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 ...
3
votes
1answer
105 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 ...
10
votes
3answers
2k 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% ...
0
votes
1answer
94 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 ...
6
votes
3answers
1k 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 ...
1
vote
2answers
121 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?
2
votes
2answers
71 views

FSCS limits and offset savings accounts

The UK Financial Services Compensation Scheme (FSCS) covers up to £75000 per person per bank entity. If one owes the same bank money in the form of a debt or a mortgage, would this affect the limit? ...
2
votes
2answers
124 views

Disputing Items to Improve Credit Report

After declaring Chapter 13 bankruptcy about 14 months ago, I find myself in a position where my best option for finding a home is to purchase one (rather then rent an apartment, which is simply not an ...
1
vote
1answer
92 views

Do stockholders ever get money from a chapter 7 bankruptcy?

And if they do, does it occur with any frequency that you could calculate the possible (non-zero) worth of your stocks if such an event were to occur?
3
votes
1answer
162 views

How can I find mortgage estimator without credit check after bankruptcy

I own a house in DC, but looking to move to Manhattan, NY. I filed for chapter 7 and got a discharge in November 2014. I reaffirmed my mortgage debt and have been paying it. I also kept open an Amex ...
1
vote
0answers
71 views

Bankruptcy discharged in 2004 and Consumer Proposal in Jan. 2015: Worthwhile to try to apply for a mortgage now?

I assume that mortgage lenders can no longer see my aunt's bankruptcy (that my aunt's credit reports do not show) because it is past 7 years. Now responsibly using 2 Credit Cards, my aunt accepts ...
3
votes
2answers
4k views

Stock goes bankrupt - what is CODI and should I worry about it?

I am a total newbie at investing and last year I purchased some stock of BBEP directly without any broker using the Robinhood app. Now BBEP has filed for bankruptcy and I see many people mentioning ...
1
vote
1answer
304 views

401K loan repayment Default

I have a 29,000.00 loan from my 401K That I am paying 800.00 per month on. My wife has been ill for 2.5 years and unable to work. Currently trying to get disability. However this has created a big ...
4
votes
3answers
222 views

What does “Settling your Debt” entail, and how does it compare to other options?

My local radio station has been running a bunch of ads from companies urging people who're struggling with paying their credit cards to "settle your debt for a fraction of what you owe." Their claim ...
4
votes
1answer
2k views

What will happen if private bank goes bankrupt in India

I saw on news that banks in India are under losses. I was just wondering, are banks in India federally insured? What happen if banks like Yes Bank or IndusInd bank goes bankrupt? How will we recover ...
1
vote
1answer
428 views

Bankruptcy: how are cars with car loans (and negative equity) and lease cars handled?

This question is about how automobiles are treated in bankruptcy proceedings when the car is either: Not fully paid yet A lease car For the sake of the question, here's some scenario: Mr. John Doe ...
5
votes
1answer
159 views

Are Dodd Frank rules applicable to all loan types?

My student loan was transferred to a new servicer several months ago, and I never received notice, neither from the previous or the new servicer, of the assignment of my loan. I thought that Dodd ...
3
votes
1answer
63 views

401k Transfer After Business Closure

I worked at a company for 4 years; they had my 401k set up through paychex. My paychecks started bouncing and soon the business was closed (it was part of a franchise and individually owned). A few ...
4
votes
1answer
116 views

Do longer term bondholders get preference in getting money back when a company defaults?

When a company defaults on its debt, would the 10 year bondholders be given preference to the 1 yearr bondholders while paying out money? What is the order of preference?