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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85
votes
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 ...
69
votes
1answer
9k 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 ...
57
votes
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 (...
33
votes
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 ...
32
votes
3answers
12k views

Declare Bankruptcy or Just Wait Seven Years?

We've got one family member who is the classic definition of "ne'er–do–well". I don't think he is capable of understanding money, issues or contracts. When you talk to him he seems to have good ...
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 ...
24
votes
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 ...
20
votes
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 ...
20
votes
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 ...
18
votes
2answers
2k views

What does Chapter 11 Bankruptcy mean to an investor holding shares of a Chapter 11 Company?

If I currently have shares in a company that has filed for Chapter 11 bankruptcy protection what impact does this have on me? Does this mean the shares stop trading? If the company successfully ...
16
votes
3answers
452 views

Aside from having to re-establish credit & credit history, what are downsides to declaring personal bankruptcy?

If someone were to file for (personal) bankruptcy protection from their creditors, is their entire debt wiped clean? And then they have seven years to wait before their credit history no longer ...
12
votes
1answer
1k views

Can a gift be re-gifted before a Chapter 7 Bankruptcy?

About a month or so ago, I gave a family member $10k to purchase a car, because he needed a reliable car for his two hour commute. He's going through some financial trouble, and is now looking to ...
11
votes
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% ...
10
votes
3answers
2k views

What exactly happens to Euro if one of European Union countries goes bankrupt?

What happens if one of the European Union countries goes bankrupt? Suppose I have money (bank deposits at local banks) in US dollars, Euros and local currency (I'm not in the US). Now one of EU ...
10
votes
3answers
517 views

Stability of a Broker: What if your broker goes bankrupt? Could you lose equity in your account?

What exactly happens if a broker runs out of funds? Could you actually lose equity in your account? If so, what should you be examining when looking at the financial report of your broker?
9
votes
2answers
550 views

Are defined benefit (DB) pension plans guaranteed in the U.S.? What happens if the sponsor company goes bankrupt?

Are defined benefit (DB) pension plans guaranteed in the U.S.? What happens to a DB pension plan and plan benefits if the sponsor company goes bankrupt? Where can somebody find more information on ...
9
votes
1answer
350 views

Does being on the board of a bankruptcy-declaring company affect my credit rating?

If I am on the managing board of a company which declares bankruptcy, will it affect my personal credit rating? I am particularly interested in Western Australia.
8
votes
5answers
8k views

Pros and cons of filing bankruptcy or paying off debt?

My credit has been trashed by me making some dumb decisions, and I'm working with a debt settlement company. A few of the debtors are unwilling to negotiate with the debt settlers and are threatening ...
8
votes
2answers
698 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 ...
8
votes
3answers
989 views

is the bankruptcy of exchange markets possible?

Because exchanged markets like NASDAQ or NYSE are normal public businesses can they go into bankruptcy ? Supposedly they went into mysterious bankruptcy then what will happen to the listed companies ...
8
votes
1answer
278 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 ...
8
votes
2answers
598 views

Received 1099-C from Discover for Bankruptcy Chapter 7

I was told by my Bankruptcy attorney that debt discharged is not income due to my being insolvent. Therefore, did Discover card err in sending a 1099-C Cancellation of Debt form to me that says "debt ...
8
votes
2answers
731 views

Stocks and Bankruptcy

Trying to understand what happens when a company goes in and out of bankruptcy. I'll use American Airlines as an example because it's what I've been following for some years. In November 2011, AA ...
8
votes
5answers
441 views

File bankruptcy, consolidate, or other options?

So, during the economic downturn, my parents' business was seriously struggling (as in not making enough income to cover its own expenses) and my parents made a few bad decisions while trying to save ...
7
votes
2answers
1k views

What happens to my credit card or line of credit if my bank goes bust?

What happens to my credit card or credit line if the bank goes bust? I'm not concerned about the BALANCE on them, I'm concerned about losing an older credit line and its effect on my credit history ...
6
votes
5answers
2k views

What are my options to deal with Student Loan debt collectors?

I had about $16k in student loans. I defaulted on the loans, and they got passed to a collection type agency (EOSCCA). The collection agency tacked another $4k onto the loans. I spoke with a ...
6
votes
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 ...
6
votes
2answers
802 views

Unable to pay even the minimum payment on credit card

I was in USA for last 10 years, and I am not able to repay the credit-card payment, not even the minimum payment due. I was paying the minimum payment due before, but as I do not have a job anymore I ...
6
votes
2answers
691 views

Outstanding cosigned loan and Bankrupt ex-partner

Background: I started a business (LLC) with a partner about 3 years ago. We took out a business Line of Credit. Because the business didn't have credit of its own, we both cosigned. 1.5 years ago ...
6
votes
2answers
407 views

Why Are Credit Card Rates Increasing / Credit Limits Falling?

I thought that there was recent legislation passed that forbid banks for jacking up rates as they had been doing from late 2008 into the first half of 2009. All of my credit cards have seen increases ...
6
votes
2answers
363 views

How can I get a home loan within 2 years of bankruptcy?

About 1.5 years ago I had my bankruptcy discharged. Now, the lease on my house is up and I have about $7k for a down payment on a small starter house (they asking $55k) However the 2 places I have ...
6
votes
1answer
866 views

How often are preferred shareholders made whole after a company goes bankrupt?

For instance, companies usually issue preferred shares at $25 and redeem them at the same price if they are ever called away. During that time you are paid interest. If the company goes under, bond ...
6
votes
1answer
181 views

If a brokerage commits fraud (by not separating customer funds), is there any SIPC protection?

Recent news on MF Global suggests the possibility that the brokerage firm did not segregate customer accounts. Suppose I have an account at MF Global and suppose they have failed to segregate my ...
6
votes
1answer
16k 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 ...
5
votes
2answers
365 views

What could happen to Detroit Municipal bonds because of Detroit's filing for bankruptcy?

It seems like there's a massive sell off of bonds at this time, such as the municipal bond listed here, for Detroit, Michigan: MunicipalBonds.com – DETROIT MICHIGAN SERIES A - 251093XY1 What ...
5
votes
1answer
371 views

What are my options for dealing with stock from a bankrupt company?

I hold some shares of a company in a discount broker account that has recently declared bankruptcy to allow for reorganization and is trading on the Pink Sheets, what are my options for dealing shares?...
5
votes
1answer
466 views

Are 401k and IRAs protected the same way during bankruptcy?

I've heard that IRAs offer a better protection during bankruptcy but i can't find any information about it.
5
votes
2answers
1k views

What happens to your investment if the broker (which acts as a custodian) goes bankrupt?

For instance, you purchased ETFs using a broker that also acts as a custodian, what will happen to your investment in case the broker / custodian goes bankrupt? Will you lose all your investments? (...
5
votes
1answer
163 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 ...
5
votes
2answers
2k views

Bankruptcy and Mortgage Reaffirmation

I filed for bankrupcty in 2008 and it was discharged October 1, 2008. In the process, I was going to reaffirm my mortgage but I had a question regarding the terms. Before I knew it, the bankruptcy ...
4
votes
3answers
313 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. ...
4
votes
2answers
3k views

If the creditor goes bankrupt, am I still required to pay back the principal I owe?

If I borrow money from a credit union (and make monthly payments) and the credit union goes bankrupt, am I still required to pay the money back? If the organization is bankrupt, to whom would I be ...
4
votes
2answers
1k views

Can a stock exchange company actually go bust?

I found out today via random googling that stock exchanges are themselves actually companies that are traded on their own exchange. For example, the London Stock Exchange. What will happen if this ...
4
votes
3answers
241 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
247 views

What legal actions should I take to get tuition fees refunded after the school went bankrupt?

I applied to the Northern School of Languages in Leeds and my student visitor visa was refused. But the school has gone bankrupt, and the financial case is now handled by the Ferguson Company Ltd. on ...
4
votes
1answer
349 views

What happened in Argentina in 2001 bank sector? did the banks closed? all or some?

What happened in Argentina in 2001 bank sector? did the banks closed? all or some? i am trying to figure out whats the possible scenario to greek banks if greece goes out of euro and into drahma and ...
4
votes
2answers
391 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 ...
4
votes
1answer
142 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?
3
votes
1answer
3k views

Will safe deposit boxes go to creditors when a bank in the United States goes bankrupt?

Money deposits will be gone when banks go bankrupt. How about safe deposit boxes? Will safe deposit boxes go to creditors as well when the bank goes bankrupt? What are the protections provided to ...
3
votes
1answer
104 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 ...