Business Bankruptcy Law | Small Business Bankruptcy Laws

Most of Congress has decided that bailing them out is not worthwhile because it won’t work anyway and they’ll just need more money in a matter of months. I agree with this. Some in Congress point out that a car company cannot survive in bankruptcy because need for parts and service are on-going and who the heck is going to buy a car from a bankrupt company (unless the car is sold well undervalue)? I think that’s also correct. So here’s what I think is the only real solution: All 3 should merge and form one company which, of course, will mean lay-offs, but not nearly as bad as the alternative. This single company would still be competing against foreign auto makers, so there are no worries about a monopoly.

Does anyone else agree with me? If not, what do you see as the alternative? Remember — letting these companies go out of business means 2 – 3 million workers losing their jobs.
Please offer the alternative to what I’m suggesting and why yours is a good idea.
Dewey, I agree, but in the meantime these 3 auto makers are on the verge of going out of business. The CEOs of GM and Ford told Congress their companies would be out of business within a year unless they received a bail-out — which they didn’t receive. Don’t even get me started about their corporate jets — what a disgrace!

To sum it up I was forced to drop out of school about a year ago because my parents went bankrupt in the middle of my first semester. I had just transferred in to my dream school (an expensive private university) and had counted on my parents co-signing a loan with me. However, they had not told me that the business they had invested thousands of dollars in had gone under so when it came time to apply for a loan and pay the university for my first semester and register for the next semester’s classes I was told there was no way they could afford it. In shock and without financial or emotional support from them I left the school and moved in with my grandmother. I didn’t handle payments with the school immediately because I had no idea how to go about it and assumed they would arrange it.

After that semester I also returned to a junior college and completed requirements to transfer in to a more affordable, state school. This last fall I began a new semester at the new university feeling excited to be back in school. However, now that it is time to register for the upcoming semester’s classes I am being told that without the transcript from the first university I cannot come back to school in the Spring (the requirements for transfer students is to submit ALL transcripts from previously attended schools by the Spring) I contacted the previously attended school to discover I had been put in collections (notices had been sent to my parents home, warning of this, and my parents had never told me). They refuse to give me a transcript without paying the amount in full which is over 10,000 dollars. I have set up a payment plan with the collections agency but again, without paying it all at once, I will not get the transcript and therefore cannot finish school at the university I currently attend. I have tried applying for a loan but as a student I do not qualify for that amount without a cosigner, which I do not have. I don’t know what to do…I have tried contacting everyone imaginable, the president of the previous university, counselors, the head of admissions at my new school, and family members but no on offers me any help or alternatives. I feel so incredibly helpless and all I want to do is finish school.

Does any one know of a lender that approves student loans without a co-signer? Should I file for bankruptcy? Contact a talk show and see if they’ll give me money?? I’D DO ANYTHING TO FINISH SCHOOL! PLEASE HELP!!

I unfortunately own some common shares of TPTX and was wondering. This is from a press release. Its not a bankruptcy so what happens to my shares? Thanks!!

http://finance.yahoo.com/q/h?s=TPTX

LA JOLLA, Calif., May 29 /PRNewswire/ — TorreyPines Therapeutics, Inc. (Nasdaq: TPTX – News) today announced that its Board of Directors has determined, after consideration of potential strategic and financing alternatives, that it is in the best interests of the Company and its stockholders to liquidate the Company’s assets and to dissolve the Company. The Company’s Board of Directors has unanimously approved a Plan of Liquidation and Dissolution of the Company (the "Plan of Dissolution") subject to stockholder approval. The Company intends to hold a special meeting of the stockholders to seek approval of the Plan of Dissolution and today it filed related proxy materials with the Securities and Exchange Commission (the "SEC").

Although the Board of Directors has approved the Plan of Dissolution, the Company continues to seek and will consider any reasonable alternative strategic or financing proposals presented to the Company. The investment firm Merriman Curhan Ford remains engaged as the Company’s financial advisor to assist in the evaluation of strategic options, including the possible sale of the Company or its AMPA/kainite receptor antagonist product candidates.

The Plan of Dissolution contemplates an orderly wind down of the Company’s business and operations. If the Company’s stockholders approve the Plan of Dissolution, the Company intends to file a certificate of dissolution, satisfy or resolve its remaining liabilities and obligations, including any contingent liabilities and costs associated with the liquidation and dissolution and make reasonable provisions for unknown or unresolved claims and liabilities, if any. Following stockholder approval of the Plan of Dissolution and the filing of the certificate of dissolution, the Company plans to delist its common stock from the Nasdaq Global Market.

The Detroit auto industry is facing bankruptcy if something doesn’t change soon. As a life-long businessman, I can tell you that adding cash cannot save a business unless it can be re-positioned to make money. Doing so just delays the collapse or becomes a regular handout.

Currently, the cost of labor per car for Honda and Toyota in their American plants is 00 to 00 lower than the Detroit (and UAW) labor cost. GM labor amounts to almost per man hour, and some worker have as much as 120 days of vacation per year. The book value of GM stock is now Negative (thats red ink, in the hole) 2 per share.
Ford is also negative; Chrysler is private but is said to be in similar shape.

Due to the terms of federal labor laws. once the union has an agreement, they can shut down a company that won’t offer them what they want. This literally keeps the business from doing business, blocking deliveries and alternate choices while overhead costs eat them alive. That tactic would be illegal if done under any other conditions except a labor strike, and that ability is how the unions have forced automakers into the agreements that created this competitive handicap. Under the current conditions, Detroit will never be able to be profitable, but continued bailouts could keep them running and thus keep union paychecks coming. At your expense, of course.

In the alternative, if the companies declare bankruptcy the union agreements will be voided. New competitive conditions would be negotiated, and the companies could be re-organized in a competitive and profitable form.

Your politicians are discussing bailouts, but none of them are willing to discuss changing the labor laws to prevent the use of extortion tactics. The unions control a huge vote base and a lot of contribution dollars, and it is dangerous to offend them, so- they just don’t go there.

IF we don’t position the auto industry where profitability is possible, aren’t we just bailing out the UAW?

OK. 5 years back we got into a problem with a business and had to file for bankruptcy. 5 years later my son needs a car. We found a great reliable car for 8,000 USD and when we applied for a loan from the bank they told us they could’nt give us a loan until the bankruptcy had cleared but we could go to court and try to get approved. We are 90% done with the payments. We are bringing in 110,000 dollars a year and doing well. What are the chances of getting approved and are there any alternatives to going to court? Any other advise?
Family of four, bankruptcy payments, other spending, and a deadline for the car is pretty soon limits the option of saving it up.

http://www.mises.org/story/1396

H.R. 1106 has a clause allowing one to put their primary residence into a bankruptcy, therefore lowering the monthly payment to an affordable one. At this time the wealthy can put a vacation home, boat and airplane into a bankruptcy.
I am 71 years old diabetic with congestive heart failure. I have lived in my home for 36 years. 10 years ago I went to my bank asking for a business loan. The banker suggested I take the equity out of my home and and change my loan to an adjustable loan. For the first 3 years it was fine. However my business failed and I’m on social insecurity. I have emptied my savings, sold my furniture and jewelry to pay the ever increasing mortgage. My monthly income is 3.00 a month and my mortgage now is 23.00 per month. If I cannot get help from the courts, my only other alternative is suicide.
To the best of my knowledge H.R. 1106 was passed by the senate and sent to the congress last week and is stil sitting there.

This may just be ignorance however I do not understand it. I just read a question by a top contributor of these questions complaining that he doesn’t understand why the government won’t provide funds for auto companies in order to bail them out of their possible bankruptcy. The thought of providing these businesses with tax dollars from the American public is insane. In my opinion the auto companies have no one to blame but their own greed and the way they decided to go with their business, the government would not bail out a business that the average American built and used every dime of their personal money to invest into the business, while CEO’s of the auto companies STILL are taking in millions of dollars a year and expecting the government (moreover the American people) to basically paying their salaries, when it was the direction they took in their company to blame for the problem they are in now. With exponential growth especially in business comes exponential decline and they should have taken precautions to prevent this from happening. Aside from their bad business decisions these are the same businesses that closed down factories in the United States, which were employing thousands of American workers, to move to China were labor was cheaper. This brought upon record unemployment rates in Detroit. Who in turn need government assistance to be able to provide for their families because they were screwed over by their employer. I understand that their are people who are a drain on society and are wrongfully collecting welfare but aside from those individuals Welfare helps out people WHO HAVE NOTHING and are asking for the governments help to keep a roof over their head. Another point that needs to be addressed in Auto Makers is the money that they received from big oil to not research alternative fuels, even though the impending Global Warming was a huge issue. Which means in a sense they may have screwed over the Human Race by destroying our planet. I don’t know I may just be venting but isn’t it the ethical for these CEO’s to take a money cut for the benefit of their company instead of asking for the governments help, providing that they never seemed to really truly care of the American public?

Roads???? read this if you think that our tax dollars even go to roads first off……
http://www.americanchronicle.com/articles/11028

Second off the whole idea is the current CEO’s of the business still raking in millions from their business, which is failing and asking for government help what happened to darwin and survival of the fittest, does it not pertain to business?

Excerpts:

This bailout was a terrible idea. Here’s why.

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they were ill-equipped to handle.

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of businesses that remain profitable.

In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy’s allocation of its financial resources.

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview

Why is this not considered as being an option? Why must the taxpayers foot the bill for bad decision making?

I want to start a business, obviously i will need a business loan

Is there any alternatives for loans or business cards? My Company has not even started yet. I wanted to purchase merchandise without getting a loan. I don’t know what to do – please help. My company is an LLC Online only. I only have an online store. Can I buy stuff with a personal credit card and write it off for tax purposes or do I need a Business Credit Card?

I would like to know the many alternatives a business can pursue instead of filing for bankruptcy. The more alternatives the better. They must be legal though.