Bankruptcy process allows GM to cut dealerships without dealing with each franchise separately. An article on CNNMoney.com pointed out that GM has a "once-in-a-lifetime opportunity" to get out of franchise contracts that they hold with several dealers. History shows that these contracts can be extremely expensive to get out of, but since bankruptcy is on [...]
In the bankruptcy case of Miller v. Sallie Mae Inc. (In re Miller) a disabled debtor who owed $20,624 on Parent Plus loans for her children's education was denied a bankruptcy discharge of her student loans because she could not prove that continuing to pay the student loan payment would cause her to fall below [...]
Chapter 11 bankruptcy is a powerful tool for business owners and high-income/debt individuals seeking bankruptcy relief. Some debtors prefer Chapter 7 bankruptcy because it allows a simple liquidation and discharge of debts giving the debtor a relatively quick fresh start. But there are some essential differences and benefits of Chapter 11 bankruptcy that debtors should [...]
According to an article in Forbes, the Reader's Digest announced that it will file for Chapter 11 bankruptcy in an effort to save its struggling publication. Using Chapter 11 bankruptcy, Reader's Digest will move to swap $1.7 billion of its debt for ownership of the company. The article said: "Chief Mary Berner said the company [...]
As the price of housing has increased in the past 10 years and access to even more extraordinary amounts of credit have opened up to consumers (until recently), many debtors have found themselves drowning in hundreds of thousands or even millions of dollars in debt. Unfortunately, large amounts of debt can close off certain types [...]
Things may be looking up for Delphi Corp., which recently announced a deal reached with a group of lenders who made a successful bid to take over control of the bankrupt auto parts supplier. The Troy, Michigan-based company, which split off from General Motors in 1999, supplies mobile electronics and transportation systems, including power train, [...]
Just ten years ago Bernie Kosar presented himself as a humble but confident businessman when he spoke of other professional athletes. He said, "A lot of athletes think that sports is [sic] a business and since they play sports they're businessman. That's a bad assumption. I know athletes who would like to have what they [...]
Four companies that operate several Golden Corrals in the Dallas - Fort Worth area have to file for bankruptcy because of a judgment against a sister company. If you ever visit Golden Corral for a meal, you can be thankful that they are going to be able to stay operational thanks to a Chapter 11 [...]
The Dallas Morning News ran an article stating that Southwest Airlines Co. will bid $113.6 million to buy Frontier Airlines Holdings Inc., a rival airline known for its low costs and low fares that is now operating in bankruptcy. According to Southwest officials, they're taking advantage of a good opportunity to grow by actively courting [...]
A survey released by Tamara Draut, vice president of policy and programs at Demos and co-author of The Plastic Safety Net: How Households are Coping in a Fragile Economy, revealed that 37 percent of low-income and middle-income households use their credit cards for basic living expenses such as housing, groceries and utilities on a regular [...]