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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31 views

What happens when a Singaporean stock brokerage firm goes bankrupt?

In Singapore, what would happen if a stock brokerage firm collapses? What happens to the customers' shares and cash? Are brokerage accounts insured in the same way that bank accounts are insured by ...
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3k views

Why would you risk bankruptcy if you lend more money than you own?

Difficult to summarize the question in just a few words, so let me elaborate here. I am currently reading the Financial Times Guide to Banking by Glen Arnold, section Money creation, and there is ...
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487 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 ...
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1answer
67 views

What happens to a company's ticker when bought out by a private company?

A U.S. company files for chapter 7 bankruptcy. A private company in Hong Kong buys the U.S company's IP and brand name to continue the company. The U.S stock ticker for the company still trades. It is ...
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142 views

What happens to a short position when a company is nationalized?

The title speaks for itself. Would this be the same as shorting a company that goes bankrupt? So you basically get to keep all your money?
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Too Big To Fail, Question about the SEC and Bankruptcy

After watching the movie, I still couldn't understand the doubt and scare the SEC chairman had to ask Lehman to file for bankruptcy. Could someone explain why this was a problem to tell them straight ...
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1answer
108 views

Does tracking stock become worthless when the parent company becomes worthless?

If a parent company that has tracking stock stock becomes worthless, do the shareholders of the tracking stock have claims on assets (e.g. subsidiaries) that the tracking stock tracks? Or is tracking ...
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141 views

What happened to the shares in this company?

I own some shares in a company OAS that was delisted from Nasdaq. It went to trade at OTC under ticker OASPQ. It later underwent a reorganization (Chapter 11) and is back trading at Nasdaq under its ...
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2k views

Can (did already) the GME-related hedge funds cover the $5 billion?

Yet another GME question I'm afraid. Straightforward... The GME-related hedge fund(s?) in question lost about $5 billion. Thus, they have to send a cheque for $5 billion† to their broker(s), and/or ...
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5answers
7k views

Why don't most people file Chapter 7 every 8 years?

Please explain to me why more people don't follow a formula like this: Converting all their assets into exempted assets (for which there are tons of options, regardless of your state -- ERISA-...
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1answer
453 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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215 views

Why is there heavy volume in a penny stock about to become worthless?

Tailored Brands (TLRD before, TLRDQ after the bankruptcy), owner of Men's Wearhouse and Jos A. Bank, filed for Chapter 11 back in August. It's about to emerge from bankruptcy later this month (end of ...
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What happens to wages when you go bankrupt? (England)

I am having a difficult time keeping up with my payments during the pandemic after being furloughed since March. I have contacted StepChange and they have advised me that the best course of action for ...
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3answers
9k views

Why do some companies choose to file for bankruptcy if it has cash to pay off its immediate debts?

Take for example the car rental business Hertz Global Holdings Inc (NYSE: HTZ). On May 22, the company filed for bankruptcy protection. But their balance sheet still looked pretty healthy at the time. ...
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127 views

Is it possible to keep mortgage after bankruptcy?

If one declares a bankruptcy, can he or she keep his/her mortgage account and continue repaying it, while erasing all the other debts? In general, is it possible to negotiate to keep some credit ...
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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 ...
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2answers
147 views

Trying to understand what happens with a brokerage firm's customers when it goes bankrupt (case of study: Lehman Brothers)

I'm trying to understand how secure it is to own mutual funds/ETFs, not in terms of market volatility etc., but in terms of judicial security (i.e. what happens to your holdings if the firm goes ...
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1answer
86 views

Does a high beta indicate a higher risk of bankruptcy?

I recently asked Should retail investors learn and use the capital asset pricing model (CAPM)?, where a good answer mentioned that "beta" is a rough measure of risk, measured based on the ...
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1answer
92 views

What is the purpose of raising money through “first lien notes”?

AMC is raising $500 million in "first lien notes". What alternatives are there to "first lien notes"? Why would a company choose to offer "first lien notes" over other ...
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10k views

If a bank fails, will debt be wiped out?

I have debt to Capital One. If they fail, and whoever the trustee is fails, will the debt eventually get lost in bankruptcy proceedings? Considering the Lehman bankruptcy is still ongoing, well past ...
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1answer
68 views

How do bankruptcy limits on property liquidation work?

I'm reading a page which lists limits on equity that can be kept when filing for bankruptcy. In particular, this page says the following: You have a motor vehicle that is valued at $15,000 and there ...
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3answers
294 views

Why would anyone choose to file for bankruptcy?

A bankruptcy wipes out the debtor's resources to pay creditors. If one has some paid off property but defaults on some unsecured accounts why would he or she want to file for bankruptcy thus risking ...
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2answers
167 views

What happens to the money over the FDIC limit when a bank fails?

I had about $4-5K at Countrywide Financial and when it became bankrupt. I recovered all my money thanks to the FDIC. I didn't encounter any problems when recovering the money, but that was probably ...
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200 views

What will happen to Whiting Petroleum (WLL) options after restructuring completes

Whiting Petroleum is currently in chapter 11 restructuring. If the restructuring plan is agreed, existing stock holders will get a 3% stake in they call "new common stock" and bond holders ...
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120 views

Should I self report a bankruptcy for a rental?

I am looking at a couple of questions on a rental application that I have never been asked before. One is asking to check off if you ever declared bankruptcy. What if the bankruptcy was over seven ...
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244 views

Why is Hertz still being traded?

Or more generally: How can a firm that files for bankruptcy still be traded? What is a bankrupt firms worth? Disclaimer: I am a complete noob regarding these topics and I probably miss already some ...
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1answer
143 views

Are there high-priced shares of quasi-bankrupt companies that are “traded just for fun”?

Suppose that some successful popular company X, whose shares are highly priced and very actively traded, suddenly ceases to be successful and goes almost completely bankrupt. However, it still exists ...
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123 views

Can companies distribute all remaning cash to shareholders right before filing for bankruptcy?

Suppose a company is insolvent with negative shareholder's equity, $10 million in debt, and has only $1 million in cash. Can the company declare dividends of $1 million to shareholders prior to filing ...
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204 views

What would happen if an hypothetical index funds bubble crashes

There are some finance professionals that have warned about an index fund bubble: Index funds bubble I'm assuming that, at some point, index funds will get into a bubble and this bubble will ...
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430 views

Why isn't my bankrupt stock trading at any price?

Yesterday, a company whose stock I own declared bankruptcy (dont worry I barely have anything in it.) I was curious to see what would happened to its stock price, but so far (2 hours 20 minutes after ...
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1answer
20k 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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1answer
44 views

Ruchi Soya industries ltd shares [closed]

What is wrong with Ruchi Soya industries ltd shares (5% up per day). They are increasing in steps per day. There are 0 sellers, how can someone then buy those shares? Is only price increasing due to ...
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2answers
280 views

How May Cash be Spent Approaching Bankruptcy?

During the bankruptcy filing process, after declaration of intent and prior to actual filing, how may money from the sale of assets be spent? I understand there is a limit to what can be repaid to ...
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2answers
499 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 ...
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1answer
48 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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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
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 ...
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1answer
108 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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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 ...
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1answer
286 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'...
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1answer
460 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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98 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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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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2answers
812 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 ...
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1answer
49 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 ...
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392 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 ...
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192 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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1answer
81 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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1answer
251 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. ...