176

DON'T talk to the creditor. DON'T trash your other good credit. DON'T declare bankruptcy for a good while. The IRA is protected. Protect it. First and foremost, the IRA is untouchable in MD. Creditors cannot touch it. Bankruptcy cannot touch it. Abe must not touch it. The IRA is a sort of "trust account", and Abe, as a "trustee", must protect that from ...


85

No, your debt is an asset. In bankruptcy assets might be sold off (there are different flavors of bankruptcy and they don't all involve complete asset liquidation). Your debt would either remain with them or be sold to another company.


53

When a company files for bankruptcy there is no guarantee that they will be able to satisfy any of their debts. Assuming chapter 7 bankruptcy, the employees with unpaid wages become creditors. Assets will be liquidated and creditors will be paid based on priority. Employees with unpaid wages are high on the priority list, but not always at the top. If the ...


46

Broadly speaking, there are two types of corporate bankruptcy in the US-- Chapter 11 and Chapter 7. The vast majority of bankruptcies you hear about in the news are Chapter 11 bankruptcies which means the company is trying to reorganize their debts rather than Chapter 7 bankruptcies where the company has to liquidate itself because it has no hope of ...


17

Absolutely not. Herstatt Bank went bankrupt in 1974. It took them about 20 years to collect all outstanding debt (bank going bankrupt when you have a 20 year loan means you still have 20 years to pay it back), with the result that the bank fulfilled 97% of its financial obligations, but it took twenty years. Statute of limitations doesn’t matter. If you take ...


14

This is a few paragraphs from the statement from the Hertz CFO in his declaration in support of the Chapter 11 filings (Hertz and its subsidiaries all filed separate chapter 11 petitions.). THC is the Hertz Company. On April 27, 2020, to preserve its liquidity for the benefit of all stakeholders, the Company elected not to pay the $135 million estimated ...


10

The bank MUST sell your debt to someone else. It must because it is obliged to sell off its assets (your note) to satisfy its creditors. The bank is not free to just leave your debt lying around in its inventory, going "la la la, I think I'll just leave these debts sit here unattended". The landlord, the county tax assessor, OfficeMax, the Acme ...


8

This can unintentionally happen. As the other answers have pointed out, what happens in bankruptcy (chapter 7 to be specific) is that another company buys the debt and life continues as normal for the debtor. From the debtors perspective it is no different than a solvent company selling off their debt to other companies, which happens all the time (...


8

A bankruptcy wipes out the debtor's resources to pay creditors. This is a bit of an overstatement. Bankruptcy comes in many forms. For individuals, the most common for is "Chapter 7", in which most of your debts are forgiven in exchange for a liquidation of assets to pay part of what's owed. Secured loans (e.g. car loan) can be taken care of ...


7

If you are actually an employee and your employer goes bankrupt, you're first in line to recover money from the bankrupt company. Assuming that the company has some assets that can be sold off, you should get at least some of the money you're owed though it may take some time. The bankruptcy court can also potentially claw back payments the bankrupt ...


7

Contact the state government. They should have the equivalent of the Federal Department of labor. The state has laws regarding how quickly employees should be paid. They can contact the employer. Of course forcing them to pay employees, could force them into bankruptcy earlier. Make sure that you are an employee. Have they been withholding taxes and FICA? ...


6

Here's an article which gives some insight into what happened with Lehman. Here are the highlights: Lehman’s bankruptcy caused minimal disruptions to most customers of its broker dealer, Lehman Brothers Inc. (LBI). One reason is that, by law, customer assets and Lehman’s own assets were segregated. Also, perhaps because the bankruptcy was to some extent ...


6

It's called a transfer in fraud of creditors, and the bankruptcy court would claw it back. It could also be a crime.


5

The fund itself is a separate legal entity that owns the actual shares, but you own a part of the fund. The company that manages the fund is just a custodian of the assets. So if, say, Vanguard goes bankrupt, then the funds it manages will not disappear. Most likely the bankruptcy courts would find another custodian, or another company would buy the ...


5

Avianca Holdings listing on NYSE was halted by NYSE prior to the market opening on 11 Mar 2020 due to the announcement of the initiation of voluntary reorganization proceedings under Chapter 11 of the United States Bankruptcy Code. Trading in AVH has been halted on other US exchanges too. During trading halts, all bids and asks are cleared and no trades ...


4

Is there any reason to think that such crash would make the companies contained in the index go bankrupt? Not by itself. A company doesn't care about the price of their own stock unless they're buying or selling it. If the company has enough money in their balance sheet they're not affected by their stock price. If not, wouldn't the index eventually ...


3

You’ve not said what jurisdiction you’re interested in, so here’s a UK answer. An Individual Voluntary Arrangement lets you do exactly what you’re asking for. The catch is that as the name suggests, it must be agreed by your creditors — it can’t be imposed on them like bankruptcy can. You need 75% (by exposed value) of them to vote for it (and 50% of those ...


3

Keeping 'up to' a certain amount of equity means that if your net assets are equal to or less than a certain amount, you won't need to sell them during bankruptcy proceedings. So if you had a car worth 1k that you owned, and had no debt on it, you would have 1k of equity, so would not need to give it up. You seem to be focusing on the 'fairness' of ...


3

The answer is very simple, why would he or she want to file for bankruptcy thus risking liquidation of his/her assets? ... in many cases such folks have little or no assets. So indeed, you're 100% correct that (in certain jurisdictions) if you, say, own a house, it would be insane to attempt bankruptcy, because it would be stripped from you. You're correct....


3

TomTom described the mechanics of bankruptcy well, but it's worth noting that there have been rumors of large car dealers buying up Hertz's fleet that might keep them afloat. I have no idea if it's true or if it would work, but it may give investors reason to take a risk on a "cheap" stock that could rebound many times over (a "lottery ticket&...


3

How can a firm that files for bankruptcy still be traded? Because bankrupty does not necessarly mean worthless. As in aboslute - it means unable to pay the bills. Technically i.e. an investor may want to make a takeover bid. They won't be able to pay money they owe to some third parties, right? Technically it means this. It does nOT mean there is no value ...


3

Trading in AVH was halted at 03:57:29 NASDAQ CBOE


2

A first lien note is similar to a mortgage: it's a promise that if you don't pay the money, your creditor can take the assets that the lien applies to. So, yes, if a company is close to bankruptcy, a first lien note can be appropriate: it gives the lender some assurance that they will get paid or get the property, even if the company files bankruptcy. More ...


2

Look at the assets. The total assets are negative too (due to losses in "invesdtments in affiliates"). Since equity is assets - liabilities, it makes sense that equity is negative.


2

I would very much doubt that any company has been saved from closure, or escaped "penny" status, simply by investors wanting to own one of their shares just for the sake of owning one. (However, it's difficult to say it has never happened). To my mind, this would seem especially unlikely when nowadays the only evidence of owning a share is nearly ...


2

Well, 7 years ago is ever, or? Simple english. They ask if ever, you say it was 7 years ago. So it happend.


2

For mortgage debt specifically, it will depend on the jurisdiction and exactly what sort of bankruptcy you're declaring. In the United States, most if not all states have some sort of homestead exemption that allows a person to retain a primary home in bankruptcy (often with limits to prevent people from keeping homes where they have millions in equity). ...


1

Boeing has a current beta of 2.16. Do you think that it has a high probability of going bankrupt? MET, COF, C, MS have betas over 1.50. Going bankrupt anytime soon? How about RTX, CVX, LOW, AXP, BAC, CVX, EMR, NVDA, GS, WFC, NKE with betas above 1.25.? Beta measures the expected move in a stock relative to how much the market moves. It reflects the ...


1

No You would still owe whoever gets the banks assets.


1

In addition to D Stanley's good answer on more common ways bankruptcy may occur and some of the protections it can provide, it is also possible that someone may simply have more debt than assets. If your debt is eligible for discharge on bankruptcy (notable exceptions would include some student loan debt depending on jurisdiction), then bankruptcy may ...


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