Business Bankruptcy Law | Small Business Bankruptcy Laws

Let’s look at his record of leadership and business acumen.

Trump inherited his father’s business and millions

In 1991 Trump’s Taj Mahal Casino fell into bankruptcy… Trump bankrupted… a Casino! It takes a special kind of business acumen to bankrupt a Casino. It happened because of questionable business practices that Trump used to prop the Casino up, including junk bonds.

It was revealed around this time that Trump had 900 million dollars of personal debt. 900 million dollars of personal debt. His businesses had 3.5 billion dollars of debt. This is the man that you want elected to be president in a time when Republicans are calling for a balanced budget. Sure, he’s one of the few human beings who has ever accumulated anything close to our nations debt, but unlike Trump, the US can’t just declare bankruptcy and move on.

In 1992 Trump’s Plaza Hotel filed for Bankruptcy.

By 1998 Trump’s business was having difficulty keeping up with even the interest on his 3 billion dollars in debt, even with some elaborate restructuring.

During these years Trump’s influence in his companies were continually dropped lower and lower as shareholders lost faith in Trump’s ability to even get dressed in the morning. Trump’s ownership of his companies dropped from 56 percent to 27 percent in 2004.

Trump Hotel’s and Casino Resorts filed for Chapter 11 Bankruptcy again in 2004. As a result Trump was forced to relinquish his role as CEO.

In 2009 Trump Entertainment Resorts again filed Chapter 11 Bankruptcy (this is getting redundant, isn’t it?).

For those keeping score, Trump:

TWICE bankrupted his Casinos.

THREE TIMES filed for Chapter 11.

If you’re looking for someone who can drive the U.S. economy into the ground, then I think you’ve found your man. After all, if the man can’t make a profit on a Casino, what kind of magic is he going to pull when the U.S. is facing record debts and the possibility of a double dip recession?

Oh, and in case you think that he’s some conservative hero, don’t forget that when he tried to run in 2000 he came out in favor of Universal Health Care.

married almost 20 yrs, she disappeared with daughter (14) for 2 weeks with no contact left son (18) on farm. the husband offered her large cash settlement to leave farm
running she refused. farm sold his mom borrowed them the cash for the farm (basically like a bank) ex wanted the money but not to pay off the debts. her theroy is she should get money and he gets the debt.his mom received her money back and now his ex claims she wants spousal and she is going to claim bankruptcy on her share of the debts unless he takes all the debt.but as of now
he no longer has the farm or that type of cash flow to cover those debts on his own. but as stated they were business parteners she sold many items from the house and she kept the money.she walked away from the business and family (only taking the daughter) and has worked various jobs since she has left and now is claiming she is unable to work and he needs to pay for her living?this man has lost everything his dream his life his farm his daughter for 2 yrs his son, his ex would not let him have contact with his daughter.she is looking for someone to take care of her financially .so he has nothing now and is still 100,000.00 in debt and she wants him to take it all and pay her spousal but they were parnters half the debt should be hers and there should not be spousal. he pays for his daughter but why should he pay spousal when they were business partners and she wasn’t financailly dependent on him, as she stated she worked the farm.the 1st judge said he wanted farm to still run be smart (to ex wife) and make a deal(to ex husband).. the husband tried..should she be entitled to spousal support, she refused the offer, forced the sale of farm, has racked the debts up with interest due to not agreeing to releasing the money to pay the debts off, but they were business partners who jointly worked on the farm and jointly earned from the farm and jointly made the debts and loans? they are still going through court. her lawyer has given her terrible advice she should of taken the cash settlement and not forced the sale of the farm.. as her life would of still been easy.as of now the ex husband works for another farmer, and she works on an assembly line. in your opinion as i know there are courts for these issues.. in your opinoin would you think she should be entitled to spousal support?

My debtor filed bankruptcy under chapter 13.He is running business and declared assetts worth 75,000.Debts 225,000.
Surplus for distribution $ 350 per month.Is it a joke?Can this be approved?

We all have to live through these tough economic times. States may have to file for bankruptcy in order to start fresh for the new year, but some states like Arkansas don’t have projected budget shortfalls but can choose to file for it. Bankruptcy refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may be released from or "discharged" from their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings. The person with the debts is called the debtor and the people or companies to whom the debtor owes money are called creditors.

The Bankruptcy Code is an informal name for Title 11 of the United States Code (11 U.S.C. §§ 101-1330), which serves as the federal bankruptcy law. Currently there are several types of bankruptcies which are referred to by their respective chapters. All bankruptcies are filed in a federal court called the US Bankruptcy Court, which will supervise such cases to termination. For over a dozen years after the ratification of the Constitution, Congress failed to adopt a single bankruptcy law. It was not until April 4, 1800, that the Sixth Congress finally adopted our Nation’s first bankruptcy law, ch. 19, 2 Stat. 19, a law that left plenty of room for state law, § 61, id., at 36.

The first federal bankruptcy law was repealed by Congress just three years later. A decade later, the U.S. Supreme Court confirmed that the Bankruptcy Clause does not vest exclusive power in Congress, but instead leaves an important role for the States. It was not until 1841 that Congress enacted another bankruptcy law, ch. 9, 5 Stat. 440, and then repealed it less than two years later, ch. 82, id., at 614. The Civil War and the debts it caused led Congress to pass another bankruptcy law in 1867, ch. 176, 14 Stat. 517, but that was likewise repealed after just over a decade, ch. 160, 20 Stat. 99.

Although the Bible does not address bankruptcy per se, I do have some principles that might apply and therefore help us make some judgments.

Biblical principle #1. We have the responsibility to keep our promises and pay what we owe. Ecclesiastes 5:4-5 says, “When you make a vow to God, do not delay to pay it; For He has no pleasure in fools. Pay what you have vowed — Better not to vow than to vow and not pay."

Biblical principle #2. Living on credit and not paying back what we owe is characteristic of the wicked. Psalm 37:21 says, “The wicked borrows and does not repay, but the righteous shows mercy and gives.” We, as Christians and Americans, have no business behaving in the same manner as “the wicked.”

Is it proper for a American or a Christian in debt to get a “quick fix” to his problem by seeking bankruptcy? Based on these verses, the answer is “No.” Both a Christian and a American are obligated to pay what he has agreed to pay, under the original terms of the agreement. It may mean a change of lifestyle and a radical revision of the budget, but the good stewardship of money is a part of godly living.

There are certain types of bankruptcy which are designed to postpone repayment, rather than evade it. In such cases, the debt is not erased, and the one filing for bankruptcy communicates his intention of repaying the debt. Court protection is extended until one has the ability to repay. This type of bankruptcy would not violate the biblical principles discussed above and would be, for the individual Christian, a matter of conscience.

In order to prevent the federal government from bailing out states, would you support a federal law that forces a state to go through bankruptcy and renegotiate their government employee union contracts?

I was in the Real Estate Business from 2005 to 2008.

I eneded up owing taxes for those 4 years to the tune of 18,000.

I got married in Feb. 2007 but my wife and I have never filed a joint tax return. NEVER!

In Sept of 2009, I filed for bankruptcy and it was discharged in March of 2010.

My wife is the only with and income right now. I have been trying to put together real estate deals with no luck as of yet.

My wife brings home about 2400 a month from her job and has a very small side business with avon and ebay. she may make an extra 300 a month off that, I am not sure, but it is not significant.

Our expenses are as follows

00 for rent
0 for car note
0 car insurance
0-600 food
0 Utilities
Term Life Insurance
0 Clothes
0 Misc

Note: We have a 9 year old son

We don’t have any saving at all but she does have a 401K with her job.

I have not brought in a dime since 2008 hence the reason I filed bankruptcy.

My question is… Do I qualify for non-collectible status and also, will they try and make my wife pay for my debts since she is working? Will they come after her bank account or wages
Also, I do not own a car. I sold it as a part of my bankruptcy in 2009.

We have no joint back accounts

We have never filed jointly on tax returns to keep or finances seprate.

Is my wife’s business income safe as well?

The Abyss
I used to enjoy sitting on the edge of the abyss. I dangled my feet over the edge, sometimes remembering just how much space separated my feet from the rock bottom. A twinge of fear would race through my chest and tickle my heart. It pumped with glee over all the excitement.

I liked watching people as they jumped in. I liked to think of just how intense the sickness and overwhelming the despair in these people must be to cast aside all rational thought and let their bodies collapse under the pressure, like Atlas if he decided he’d had enough of this business of holding up the sky, letting it crush him and finally getting some sleep. This too tickled, and I laughed.

The abyss measured a half a mile in diameter. Who knew how deep it was. You couldn’t see the bottom. It was too far down for sunlight to reach. But I knew there were rocks. That’s what everyone said, anyway—everyone who managed to climb back out. I never saw most who went in ever again. They either died in the fall or continue to wander aimlessly on the rock bottom, neck-deep in dark. And of those who made it out, most jumped back in.

The jumpers were always being chased by something. Kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death were common. Occasionally I saw someone chased over by their families. Mostly in-laws and children in those instances; other times, divorce. These things followed closely and disappeared when the person jumped.

When I first came here, I tried to stop some from jumping. They were too damned determined to hit rock bottom, and raced past me. I almost fell in once myself, and decided from that point there was nothing to be done of it, and watched the joke of it all instead.

I don’t remember how long I sat there, watching, laughing. Now that I think of it, the whole thing was rather monotonous. Though not long ago, things started to change. I first noticed it when I saw a man and woman dive into the abyss, obviously married—they held hands as they jumped—chased by their daughter. She couldn’t have been more than ten years old, blond hair. Her face was innocent, but looks are deceiving. The girl stopped at the edge as these things often do, and peered over. She didn’t disappear, so I called to her.

“Mommy and Daddy jumped into that hole,” she said.
“I know,” I told her, and motioned for her to sit next to me. I asked her what had happened and she said they were having a fight and wanted a divorce. I supposed they were being chased by each other and didn’t know it, thinking they were being chased by whatever they were having a fight about, and this girl followed them here.

She told me about their problems, which weren’t unusual, and asked me if they’d be coming back. I said most people don’t. I should have lied. I told her about how people were chased into the abyss by kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death. Sometimes they were chased by their families; mostly in-laws and children, sometimes divorce. She looked up at me, then back into the abyss. I told her that you couldn’t stop someone who was going to jump in because they were damned determined to do so and she dove. No warning. No time to protest. She was simply gone, and damned determined about it.

And I was alone again. Alone to watch as people jumped. I tried laughing, but I couldn’t muster the breath. I watched in silence. Middle-aged people, then young people, then children. The things they were chased by became more trivial too. Bankruptcy turned into student loans, divorce into high-school breakups, government into anyone with the slightest control over what people do. And then there was nothing chasing them, they just came and jumped. The abyss became so crowded with jumpers, they didn’t have room to be chased. A line formed, and people waited patiently for their turn, as if jumping into the abyss were somehow the most natural thing in the world, as if they’d been bred and raised to do it.

And then the line got smaller, and smaller, until there was no line. There was nobody left to go in, and nobody came out. Rock bottom—home to the whole human race.
Fuck it.

I’m about to start a Chapter 7 bankruptcy petition preparing business and I needed to find out a few different things before I get bonded and registered with the county clerk’s office next week.

1) Since a legal document assistant like myself can not delegate legal advice, would a prospective client/debtor have to find out if he/she qualifies for Chapter 7 BEFORE coming to me to fill out the client questionnaire and have me fill out the petition, schedules, etc.? If so, do they need to go through an attorney to do so, or will they be able to tell based off of their existing real and personal property, income and debts?

2) What type of affordable Chapter 7 Bankruptcy software is available to non-lawyers (legal document assistants like myself)?

I am aware of the limitations placed on legal document assistants (fee caps, inability to delegate legal advice). I only need to determine the two aforementioned pieces of information and then I will be able to start work asap.

The Abyss
I used to enjoy sitting on the edge of the abyss. I dangled my feet over the edge, sometimes remembering just how much space separated my feet from the rock bottom. A twinge of fear would race through my chest and tickle my heart. It pumped with glee over all the excitement.

I liked watching people as they jumped in. I liked to think of just how intense the sickness and overwhelming the despair in these people must be to cast aside all rational thought and let their bodies collapse under the pressure, like Atlas if he decided he’d had enough of this business of holding up the sky, letting it crush him and finally getting some sleep. This too tickled, and I laughed.

The abyss measured a half a mile in diameter. Who knew how deep it was. You couldn’t see the bottom. It was too far down for sunlight to reach. But I knew there were rocks. That’s what everyone said, anyway—everyone who managed to climb back out. I never saw most who went in ever again. They either died in the fall or continue to wander aimlessly on the rock bottom, neck-deep in dark. And of those who made it out, most jumped back in.

The jumpers were always being chased by something. Kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death were common. Occasionally I saw someone chased over by their families. Mostly in-laws and children in those instances; other times, divorce. These things followed closely and disappeared when the person jumped.

When I first came here, I tried to stop some from jumping. They were too damned determined to hit rock bottom, and raced past me. I almost fell in once myself, and decided from that point there was nothing to be done of it, and watched the joke of it all instead.

I don’t remember how long I sat there, watching, laughing. Now that I think of it, the whole thing was rather monotonous. Though not long ago, things started to change. I first noticed it when I saw a man and woman dive into the abyss, obviously married—they held hands as they jumped—chased by their daughter. She couldn’t have been more than ten years old, blond hair. Her face was innocent, but looks are deceiving. The girl stopped at the edge as these things often do, and peered over. She didn’t disappear, so I called to her.

“Mommy and Daddy jumped into that hole,” she said.
“I know,” I told her, and motioned for her to sit next to me. I asked her what had happened and she said they were having a fight and wanted a divorce. I supposed they were being chased by each other and didn’t know it, thinking they were being chased by whatever they were having a fight about, and this girl followed them here.

She told me about their problems, which weren’t unusual, and asked me if they’d be coming back. I said most people don’t. I should have lied. I told her about how people were chased into the abyss by kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death. Sometimes they were chased by their families; mostly in-laws and children, sometimes divorce. She looked up at me, then back into the abyss. I told her that you couldn’t stop someone who was going to jump in because they were damned determined to do so and she dove. No warning. No time to protest. She was simply gone, and damned determined about it.

And I was alone again. Alone to watch as people jumped. I tried laughing, but I couldn’t muster the breath. I watched in silence. Middle-aged people, then young people, then children. The things they were chased by became more trivial too. Bankruptcy turned into student loans, divorce into high-school breakups, government into anyone with the slightest control over what people do. And then there was nothing chasing them, they just came and jumped. The abyss became so crowded with jumpers, they didn’t have room to be chased. A line formed, and people waited patiently for their turn, as if jumping into the abyss were somehow the most natural thing in the world, as if they’d been bred and raised to do it.

And then the line got smaller, and smaller, until there was no line. There was nobody left to go in, and nobody came out. Rock bottom—home to the whole human race.
Fuck it.

Owen drops out of school before he completes his college education and starts his own business. Five years later, Owen files for bankruptcy under Chapter 13. Owen will obtain a discharge of all debts provided for by the Chapter 13 plan if the value of the property distributed under the plan is greater than what would have been available in a liquidation and

a. if he fails to make all payments due to events beyond his control.
b.if he stays in business for at least five years.
c. if he takes out a student loan and returns to school.
d. under no circumstances.

Today, Bank of America announced it’s plan to buy Countrywide Financial, who is allegedly right on the brink of Chapter 11 Bankruptcy. Why does one company buy another company that is bleeding green? Why do you want a company that a bank won’t touch with a ten foot pole? My employer (a small business) is in a very tight squeeze, yet I don’t see any other companies rushing to come buy us up. What gives? The last thing we seem to be able to do is find more investors.

The articles say that Countrywide is rescued, but I don’t understand how. If I ever buy a company, it won’t be to blow a wad of cash and then turn around to pay off all of their old debts.

Can somebody tell me why a company teetering on disaster is a good buy, and also how this acquisition helps?

The Abyss
I used to enjoy sitting on the edge of the abyss. I dangled my feet over the edge, sometimes remembering just how much space separated my feet from the rock bottom. A twinge of fear would race through my chest and tickle my heart. It pumped with glee over all the excitement.

I liked watching people as they jumped in. I liked to think of just how intense the sickness and overwhelming the despair in these people must be to cast aside all rational thought and let their bodies collapse under the pressure, like Atlas if he decided he’d had enough of this business of holding up the sky, letting it crush him and finally getting some sleep. This too tickled, and I laughed.

The abyss measured a half a mile in diameter. Who knew how deep it was. You couldn’t see the bottom. It was too far down for sunlight to reach. But I knew there were rocks. That’s what everyone said, anyway—everyone who managed to climb back out. I never saw most who went in ever again. They either died in the fall or continue to wander aimlessly on the rock bottom, neck-deep in dark. And of those who made it out, most jumped back in.

The jumpers were always being chased by something. Kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death were common. Occasionally I saw someone chased over by their families. Mostly in-laws and children in those instances; other times, divorce. These things followed closely and disappeared when the person jumped.

When I first came here, I tried to stop some from jumping. They were too damned determined to hit rock bottom, and raced past me. I almost fell in once myself, and decided from that point there was nothing to be done of it, and watched the joke of it all instead.

I don’t remember how long I sat there, watching, laughing. Now that I think of it, the whole thing was rather monotonous. Though not long ago, things started to change. I first noticed it when I saw a man and woman dive into the abyss, obviously married—they held hands as they jumped—chased by their daughter. She couldn’t have been more than ten years old, blond hair. Her face was innocent, but looks are deceiving. The girl stopped at the edge as these things often do, and peered over. She didn’t disappear, so I called to her.

“Mommy and Daddy jumped into that hole,” she said.
“I know,” I told her, and motioned for her to sit next to me. I asked her what had happened and she said they were having a fight and wanted a divorce. I supposed they were being chased by each other and didn’t know it, thinking they were being chased by whatever they were having a fight about, and this girl followed them here.

She told me about their problems, which weren’t unusual, and asked me if they’d be coming back. I said most people don’t. I should have lied. I told her about how people were chased into the abyss by kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death. Sometimes they were chased by their families; mostly in-laws and children, sometimes divorce. She looked up at me, then back into the abyss. I told her that you couldn’t stop someone who was going to jump in because they were damned determined to do so and she dove. No warning. No time to protest. She was simply gone, and damned determined about it.

And I was alone again. Alone to watch as people jumped. I tried laughing, but I couldn’t muster the breath. I watched in silence. Middle-aged people, then young people, then children. The things they were chased by became more trivial too. Bankruptcy turned into student loans, divorce into high-school breakups, government into anyone with the slightest control over what people do. And then there was nothing chasing them, they just came and jumped. The abyss became so crowded with jumpers, they didn’t have room to be chased. A line formed, and people waited patiently for their turn, as if jumping into the abyss were somehow the most natural thing in the world, as if they’d been bred and raised to do it.

And then the line got smaller, and smaller, until there was no line. There was nobody left to go in, and nobody came out. Rock bottom—home to the whole human race.
Fuck it.

The Abyss
I used to enjoy sitting on the edge of the abyss. I dangled my feet over the edge, sometimes remembering just how much space separated my feet from the rock bottom. A twinge of fear would race through my chest and tickle my heart. It pumped with glee over all the excitement.

I liked watching people as they jumped in. I liked to think of just how intense the sickness and overwhelming the despair in these people must be to cast aside all rational thought and let their bodies collapse under the pressure, like Atlas if he decided he’d had enough of this business of holding up the sky, letting it crush him and finally getting some sleep. This too tickled, and I laughed.

The abyss measured a half a mile in diameter. Who knew how deep it was. You couldn’t see the bottom. It was too far down for sunlight to reach. But I knew there were rocks. That’s what everyone said, anyway—everyone who managed to climb back out. I never saw most who went in ever again. They either died in the fall or continue to wander aimlessly on the rock bottom, neck-deep in dark. And of those who made it out, most jumped back in.

The jumpers were always being chased by something. Kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death were common. Occasionally I saw someone chased over by their families. Mostly in-laws and children in those instances; other times, divorce. These things followed closely and disappeared when the person jumped.

When I first came here, I tried to stop some from jumping. They were too damned determined to hit rock bottom, and raced past me. I almost fell in once myself, and decided from that point there was nothing to be done of it, and watched the joke of it all instead.

I don’t remember how long I sat there, watching, laughing. Now that I think of it, the whole thing was rather monotonous. Though not long ago, things started to change. I first noticed it when I saw a man and woman dive into the abyss, obviously married—they held hands as they jumped—chased by their daughter. She couldn’t have been more than ten years old, blond hair. Her face was innocent, but looks are deceiving. The girl stopped at the edge as these things often do, and peered over. She didn’t disappear, so I called to her.

“Mommy and Daddy jumped into that hole,” she said.
“I know,” I told her, and motioned for her to sit next to me. I asked her what had happened and she said they were having a fight and wanted a divorce. I supposed they were being chased by each other and didn’t know it, thinking they were being chased by whatever they were having a fight about, and this girl followed them here.

She told me about their problems, which weren’t unusual, and asked me if they’d be coming back. I said most people don’t. I should have lied. I told her about how people were chased into the abyss by kings, presidents, city officials, congressmen, religious leaders, taxes, debts, law, morality, and death. Sometimes they were chased by their families; mostly in-laws and children, sometimes divorce. She looked up at me, then back into the abyss. I told her that you couldn’t stop someone who was going to jump in because they were damned determined to do so and she dove. No warning. No time to protest. She was simply gone, and damned determined about it.

And I was alone again. Alone to watch as people jumped. I tried laughing, but I couldn’t muster the breath. I watched in silence. Middle-aged people, then young people, then children. The things they were chased by became more trivial too. Bankruptcy turned into student loans, divorce into high-school breakups, government into anyone with the slightest control over what people do. And then there was nothing chasing them, they just came and jumped. The abyss became so crowded with jumpers, they didn’t have room to be chased. A line formed, and people waited patiently for their turn, as if jumping into the abyss were somehow the most natural thing in the world, as if they’d been bred and raised to do it.

And then the line got smaller, and smaller, until there was no line. There was nobody left to go in, and nobody came out. Rock bottom—home to the whole human race.
Fuck it.
Yeah… I wrote it…

Your Question
getting a feel for time?
I am in a difficualt situation where my buisness has dropped by 70% in the past 18 months – followed the recession perfectly – I have had to lay off my entire staff but two remaining and we are trying to sell our building inorder to pay our corporate debts – of hwich I have 135K some on credit cards some on various loans. all are personall guaranteed. i listed the building 5 months ago and we just atarted to get some interest as the market is starting to warm up here in central texas. I am pretty sure it will sell by summer, I hope. if we can sell it, then all our debts are paid and I can either resume business in a much smaller fshion or close it down and start anew in a new career that is less subject to economic fluctuations. my question is; we stopped making payments on our AMEX card about 5 months ago because we cant make the 30 a month payment. there is a balance of K. does anyone have a feel for how quickly or what the timeline is for them to actually file suit locally? is there any strategy I can employ to get some more time? I am just trying to buy time until the building sells, so I can pay them and everyone else. If they file a suit against me, I dont see any option but to protect myself by filing bankruptcy.

Our company is a startup, about 3 months into operation, but are already swimming in about ,000 of debit ( ,000 loan, and ,000 credit card ), the problem being we made a few costly mistakes in the beginning, and thus here we are today.

My main full time job, is cutting payroll by almost 50%, so instead of making 00 – 1500 a month, now its less than 0. I cannot pay my current debts off. I’m already enrolled into a personal debt collection management program.

*** Here is my question ***
1. As a C-Corporation am I personally protected from the business debt? Meaning if say the business owes X amount of dollars, they cannot harass me or try to take my car or house or w/e to pay off the funds.

2. How do I go about explaining to them? Should I file for chapter 11 bankruptcy.. but at the same time I’d like to save the company somehow, I just can’t pay off this debt.

Any help would be very much appreciated.

Thank you!

A friend of mine owns a small business and since he "sold" shares of the company to friends and family to raise money to open it, he filed the business as a Corporation C.

He is now horribly in debt because he did not balance his budget wisely, and he is planning on filing bankruptcy. He has not told any of the "shareholders" because he says when a Corporation C files bankruptcy the government and collectors cannot sell or reposess the shareholders personal finances and property to cover the Corporation’s debt, they can only go after the finances, stock and profits of the business to cover the debts.

Everyone else I have spoke with about this said he is full of BS and that if the business does fold and he files they will start selling off business stock and fixtures, and if that does not cover the debt they will start with the highest sharehold and work their way down until they get all of their money.

Which is true? Who is right?

~~ Abe

DETROIT – Bankruptcy protection for the nation’s biggest automaker is becoming more probable with a deadline just over two weeks away, the company’s top executive told reporters Monday.
General Motors Corp. CEO Fritz Henderson is still holding out hope that the company can restructure without court protection, but he says the tasks to complete before a June 1 government-imposed deadline are large.
The automaker, Henderson said, is looking at its operations country-by-country to determine where it might have file for bankruptcy, but he says a U.S. bankruptcy doesn’t necessarily mean that GM would file in other locations.
"Certainly the task that we have in front of us is large," Henderson said during a conference call to update the company’s restructuring efforts. "There is still an opportunity and still a chance for it to be done outside of a court process."
GM shares fell 13 cents, or 8.1 percent, to .48 in midday trading.
General Motors has received .4 billion in federal loans, and the government deadline to restructure or seek Chapter 11 protection is just over two weeks away. But the company must reach concessionary agreements with unions, persuade thousands of bondholders to exchange billion in debt for 10 percent of GM’s stock, cut thousands of dealers, close plants and lay off more salaried workers.
Under Chapter 11 reorganization, a company can stay in operation under court protection while sheds debts and unprofitable assets to emerge in a stronger financial position.
Also Monday, Henderson left open the possibility that GM would move its corporate headquarters out of Detroit. The company, he said, is looking at everything within its business.
"It’s not like we have that queued up at the top of our list," he said, adding that GM has a large number of people in Detroit and is proud to be here.
He would not comment about reports about Fiat Group SpA’s interest in getting 80 percent of GM’s European Opel operations, saying that any structure must address the needs of both partners.
Henderson said GM has an urgent need for funding from the German government, so any partner for its European operations would have to be suitable to the government.
"We have a need for funding, actually, in our European business, that’s important and urgent and the German government hasn’t indicated an interest in running our business," Henderson said. "We’re going to make sure that any partner we pick in this business is going to be suitable for them, so that if we need their support, we obviously want them to find any partner to be reasonable and acceptable.
Henderson cast doubt on reports that GM may sell its Latin American operations, saying they have consistently brought great returns to the company.
"This is a business that we know and like very much," he said.

WE LOST OUR PRIMARY RESIDENCE, A NICE HOUSE IN A GOLF COURSE COMMUNITY, WHEN MY REAL-ESTATE-LINKED BUSINESS WENT DOWN IN THE HARD TIMES. WE MOVED TO OUR SMALLER HOUSE WHICH WE HAD BEEN RENTING. MY BUSINESS EQUIPMENT AND NICE HOME IS BEING REPO’D, I AM 65 YEARS OLD BUT STILL TRYING TO RUN MY BUSINESS AT HALF-SPEED. I RECEIVED ENOUGH MONEY TO EITHER PAY DOWN MOST OF MY MORTGAGE ON THE SMALLER PROPERTY OR PAY OFF THE DEBTS AND NOT DECLARE BANKRUPTCY–BUT THIS WOULD FORCE ME TO CONTINUE TRYING TO CARRY THE HIGH DEBT LOAD THAT GOT ME IN TROUBLE IN THE FIRST PLACE! (CHAMPAGNE PAYMENTS ON A BEER INCOME). I AM HOPING THIS ONE GOES TO SUZE ORMAN. THANKS, APACHE BOB.

in the divorce decree it states that I am responsible for all debts incurred by my former business and that she is relieved from them. I sold her the truck because I didn’t need it in jail and I owed her money as well for paying my child support current last year. Here’s where it gets confusing, i am in jail in Texas and looking at a felony revocation where I would be spending 2-10 years in prison. Alabama and Mississippi is where most of my debts are and one has even filed small claims three days after I left alabama. I need to act on this fast. Can I do this myself with the correct forms? Which state should I file in? Texas allows you to keep property in which you need for work. But all the divorce decree said that I would be allowed my personal property only and it didn’t stipulate what was personal property. my ex seems to think its just my clothes. Any suggestions would be greatly appreciated.

I have a small LLC business that I only run on the internet, (actually it runs it’s self now that i’m not actively working it anymore). I just recently lost my 5th job of the year (no jobs in our town) and am contemplating bankruptcy. Can they take the Money that my business has in it’s account at the bank, to pay for my debts?

We opened a small business last year. We did okay the first few months, but once January hit our sales were less than half and debts started building up fast. We are now into May and haven’t paid ANY rent this year and are behind with several suppliers. We put it up for sale hoping to get back to where we were before the business but all potentials think the lease is too expensive.
I don’t want to file bankruptcy as we are not incorporated and I’d have to be personally bankrupt as well and risk losing our family home, etc. because of this.
We have a lot of children and are suffering terribly from this business nightmare.
Any ideas of what we can do? I was thinking to lower the store price dramatically to just make enough money to pay the back rent, suppliers and one of my several business loans. At least I’ll be out and can get a regular job to pay down all the other business loans I have.
Please help if you know anything in this area.