General Motors, America’s largest automaker has filed for Chapter 11 bankruptcy and a lot of Americans are wondering just how the bankruptcy will affect their life.

Well let’s look at the basics:

  • If you work for GM, you may face job losses or reduced salary or benefits during the GM bankruptcy.
  • If you are a GM retiree, you pension is safe, for now; but dental and vision benefits will be cut starting July 2009. Also be prepared for higher co-pays for medical visits and medication that will most likely remain high even after the bankruptcy.
  • If you own a GM vehicle under warranty, you warranty is still good.  The federal government has already promised to back all warranties of bankrupt automakers.
  • If you’re trying to resell your GM vehicle expect to get a lot less for it than you would have if GM didn’t file bankruptcy.
  • The GM bankruptcy will not negatively affect the availability of auto parts for you GM vehicle.
  • If you own GM stock, you shares may be worthless or nearly worthless.