THE Bankruptcy Thread (merged)

[Markos101]

Okay, one I know so far - US Airways.

[smiley]

The next one (but not so major) DCA (Dutch Caribbean Airlines). It declared bankruptcy this morning.

[lowem]

Don't know that much about airlines, here's one from the IT side of things :

Commerce One

[Aaron]

Continential in same boat

[JayHMorrison]

Delta Airlines (symbol: DAL) will likely file bankruptcy by the end of October.

$21 billion in debt,
Losing $500 million per quarter,
0% of it's jet fuel is hedged,
less than $1.5 billion in cash left.
Credit rating at the lowest level possible.

[budeone]

You are forgetting one big company...

























.







The United States of America

[trespam]

You are forgetting one big company...

The United States of America

Good point. I think the bankruptcy proceedings have in fact already begun. The firesale is in progress. Foreigners are buying up real-estate, companies, bonds, and whatever they can in order to recycle the dollars we sent oversees buying crap.

So I guess the going out of business sign is already up. It's just a question of when we finally hand all the keys over to the new owners.

[BabyPeanut]

Arianna said "Expletive deleted": how she must hate America. How she must hate Jesus. Arianna Online

[BabyPeanut]

every 15 seconds, someone somewhere in America is going bankrupt.

How long will it take for everyone to go bankrupt at that rate?

295,258,206 * 15 = 4,428,873,090 seconds or
73,814,551.5 minutes
1,230,242.525 hours
51,260.1052083333 days
about 140 years.
Relax

[clv101]

How many people have to go bankrupt before the creditors fail? I think I remember reading 5% somewhere.

[BabyPeanut]

How many people have to go bankrupt before the creditors fail? I think I remember reading 5% somewhere.

Well that would be about seven years then.

[BabyPeanut]

http://www.msnbc.msn.com/id/5033402/

The Associated Press
Updated: 4:31 p.m. ET May 23, 2004

WASHINGTON - Personal bankruptcies rose 2.8 percent in the 12 months ending March 31, continuing the upward trend of recent years but marking a more moderate increase than in earlier months, data released Friday show.

New personal bankruptcy filings rose to 1,618,062 from 1,573,720 in the 12 months ending March 31, 2003, according to the data from the Administrative Office of the U.S. Courts.

http://msnbc.msn.com/id/6806883/

Business bankruptcies soared in '04
By Tom Locke
The Denver Business Journal
Updated: 7:00 p.m. ET Jan. 9, 2005

If there were any doubts that Colorado's had a heck of a time climbing out of its recessionary hole, recent bankruptcy numbers put them to rest.

Contrary to national trends, Colorado business bankruptcy filings rose a whopping 43.5 percent to 775 in 2004, the highest number of any year since 1993, according to the U.S. Bankruptcy Court for the District of Colorado.

And total Colorado bankruptcy filings, which are dominated by personal bankruptcies, reached an all-time high in 2004, growing 8.6 percent from 2003 to 27,991.

For glass-half-full observers, there is at least one positive aspect: The rate of year-over-year increase for both business filings and total filings was lower in the fourth quarter than for 2004.

In 2004, year-over-year numbers for business bankruptcies showed first-quarter numbers up 127 percent; second-quarter numbers up 112 percent; third-quarter numbers flat, at 0 percent; and fourth-quarter numbers up 6.3 percent.

"Clearly the second half of the year was better than the first half of the year," said Tucker Hart Adams, chief economist for the Rocky Mountain region for US Bank.

Colorado business bankruptcies are tabulated across all chapters of bankruptcy and are categorized as business filings if a business name was used in the filing, if the filing was identified as a business case by the debtor or debtor's lawyer, or if more than half the debt was business-related.

While Adams doesn't think Colorado is out of the woods yet on business bankruptcies, she doesn't expect to see big increases in those numbers in 2005.

"I think the worst is over," Adams said. "By the end of the year, I think it could be declining."

U.S. business bankruptcy numbers for the fourth quarter aren't in yet. But for the year ended Sept. 30, 2004, Colorado's big increase ran counter to national trends. U.S. business bankruptcies fell 3.8 percent to 34,817 for the 12-month period ended Sept. 30, 2004 from the year-ago period, according to the American Bankruptcy Institute.

U.S. total bankruptcies also dropped year-over-year for that period by 2.6 percent, contrary to Colorado's rise. Mean-while, for that same period, Colorado ranked, by percentage, as the second-worst bankruptcy district in the country, according to the ABI.

Colorado posted a 10.4 percent year-over-year rise in total bankruptcies for the year ended Sept. 30, second only to the southern district of New York, at 20.6 percent.

As with business bankruptcies, Colorado's total bankruptcies grew slower in the fourth quarter, at 4.4 percent, than for the full year.

Still, that 4.4 percent is almost four times as fast as Colorado's recent population growth rate of 1.2 percent a year. And Adams thinks total bankruptcies will keep rising in 2005.

"I think we'll continue to see increases because consumers are up to their eyeballs in debt," Adams said. "I wouldn't be a bit surprised to see 2005 be a new record."
(...snip...)

[shady28]

From www.itulip.com :

[aldente]

Cool site. Thanks for the link!

[sol]

Mmmmm.....think the word is out I spose this is a good a time as any

[oilluber]

we will need alot more bankruptcies than that to
liquidate all the funny money that Greenspan has
created in his term.

[BabyPeanut]

U.S. bankruptcies soar before tougher rules begin (link)
Thursday 13 October 2005, 4:20pm EST
By Kristin Roberts

WASHINGTON, Oct 13 (Reuters) - Americans are racing by the thousands to file for bankruptcy before a new law takes effect on Monday that makes it harder to wipe away old debts.

Filings have skyrocketed at stunning rates, topping more than 3,000 percent in many big cities and even more for smaller ones, according to data from U.S. bankruptcy courts.

"It's unbelievable," said Michael Dean, analyst at Fitch Ratings in New York. "You look at the chart and you have to set it down and step back."

In Manhattan, filings under the chapter of the bankruptcy law that allows consumers to eliminate debts surged to 2,498 in the first 13 days of October compared with 62 in the same period of 2004.

more at web site

[some_guy282]

This was to be expected. Now let's wait and see what happens to bankruptcy filings after the 17th, and what happens to those people and their assests...

[rogerhb]

Way to go, America leads the world again!

[bruin]

A good chunk of these people probably didn't even need to file.

You read some of their statememts, "Everyone deserves to wipe the slate clean and start over."

Oh really? Everyone deserves a shopping spree and then wipe the debt clean?

One way to feel better about it all is call your credit cards an insurance policy. If you fail to make the numbers add up, you can file a "claim" and start over again.

But in the end, the new bankruptcy law makes sense. It will make many spend the next 5 years paying what they can, and then clean the slate. Instead of an instant get out of jail card.