Bankruptcy Essays (Examples)

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Bankruptcy eform Act of 2005 and Explaining Why Congress Instituted This Act
When an individual or a firm comes to a financial situation where its assets are unable to cover the debt or liabilities and there is no capital or asset that can be liquidated to pay the debt the firm or person becomes insolvent. Formerly there were prison sentences for debtors, but the laws from the medieval periods have been amended. In the United States the person or firm that reaches the stage of bankruptcy can file for an absolute dilation of credit by being declared bankrupt. Legal motions have to be made in the appropriate court of law that deals with the issue. This is available to both the corporate and individual debtors with the first legislation coming to be passed in 1800. Individuals incurring debts from the lenders have put the lenders in a spot by taking recourse….

It provided for fast proceedings, encouraged debtors to reschedule their obligations rather than liquidate and helped creditors recover their claims against bankrupt estates. The 1994 Act also created the National ankruptcy Commission, charged with investigating further modifications of the bankruptcy law. Latter laws, however, disregarded many of the Commission's recommendations. In April 2005, President George W. ush signed the ankruptcy Abuse Prevention and Consumer Protection Act of 2005. Many experts consider this the most extensive rework of the U.S. bankruptcy law since 1978. The most important changes introduced in this Act concern individual bankruptcy cases, small business bankruptcies and cross-border insolvency cases (AC Amega, Jackson).
II General Concept

ankruptcy is governed by the ankruptcy Code, which became effective in 1978 (Empowerment Zone 2007). It was amended in 1994 and then in 2005. The 2005 amendments formed the ankruptcy Abuse Prevention and Consumer Protection Act of 2005 or APCPA. This Act ignited….

The same officials that controlled the municipality prior to the filing continue to run it, and the bankruptcy court has no authority to intervene or to deviate from their authority. Note that since the bankruptcy process changes nothing in the locality's political structure. Therefore, the incentives that promoted local spending and caused the bankruptcy to begin with, remain in force.
This explains why municipalities that file for Chapter 9 tend to return to insolvency after only a few years. The city of Mack's Creek, for example, filed for bankruptcy in 1998, then for a second time in 2000, and then it contemplated a third bankruptcy in 2004. The city of Westminster, Texas filed on 2000, and only 4 years later filed again. The city of Prichard, Alabama filed for bankruptcy at the end of 1999, came out of the bankruptcy only in 2007, and now, talks of a new bankruptcy….

Similarly, establishing payment plans with vendors may help reduce monthly costs and free up extra cash. The benefit of such restructuring is that it would allow the company to avoid the highly invasive Chapter 11 process, where there is a loss of control as creditors and a court get to weigh in on company operations. The downside of debt restructuring is that Interstate would still have to pay its debts in full, and quite likely much more in the long run, as interest accrues.
Another option for Interstate would be to find ways to free up or generate extra cash. The company could sell assets, particularly assets that are not critical to core operations, or lay off some of its workforce. The advantage of this process is that it can improve cash flow without accruing additional debt, and Interstate did pursue these options on a limited basis (Twitty). The downside….

ankruptcy of WomenFirst Health Care, Inc.
Women First HealthCare, Inc. entered the American business scene in 1996 and its declared mission was to "to help midlife women make informed choices regarding their health care and to provide pharmaceutical products" and, additionally, to provide specific pharmaceutical products to meet the needs of women over forty years. In this sense, the company developed several products, including hormone treatments, meant to improve the life condition of middle- aged women.

Even if, in the beginning, there seemed to be a highly potential market segment that could have been profitably exploited and even if a brief analysis in 2001 showed a significant rise in the stock quotations, the company filed for bankruptcy in 2004, only to end a period of continuous losses and accumulated debts. Had we not had a look at some documents and had we not analyzed the actual happenings, we might have believed this….

Bankruptcy may occur when people or businesses that are financially-distressed may have their debt eliminated in part or altogether. The number of bankruptcy filings for the fiscal year ending March 31, 2003 was ~1.6 million in the United States alone (Levy and LaGana). Common types of bankruptcy include filing Chapter 7, 11, 12, or 13. Chapter 7 is the most common type of bankruptcy and may be used by people or businesses. Chapter 13 bankruptcy is limited to people only. Chapter 11 and Chapter 12 bankruptcy are much less common and will not be discussed in this report.
With a Chapter 7 bankruptcy, a court-appointed trustee will divide the debtor's property into "exempt" and "non-exempt" property (Taylor). The trustee will sell all of the debtor's non-exempt property and use the money to pay off the debtor's unsecured creditors. Secured creditors are protected by their security interest in the debtor's property (called….

bankruptcy?
There are essential two primary purposes for the existence of federal bankruptcy laws. The first purpose is to provide debtors with a legally recognized method for discharging their debt and affording said debtors with an opportunity for a fresh start financially. The second purpose is to provide creditors with protection of their interests in the estate of the bankrupt party. In all bankruptcy, all debts are listed and creditors are categorized as either secured or unsecured. Secured creditors enjoy a better position relative to any assets in the bankrupt estate as they have an enforceable interest in said assets. Bankruptcy, depending on the type utilized by the debtor, can either erase the indebtedness of the debtor or allow the debtor additional time to satisfy his debts without interference from his creditors.

What is a lien. Give an example.

In bankruptcy filings liens, claims against property that are filed in order to….

Models to Predict Bankruptcy
PAGES 10 WORDS 3285

Discriminate Analysis and Other Models to Predict Bankruptcy
Type of Data Used

Selection of Keywords

Authenticity and Validity

Methods Used for the Prediction of Bankruptcy

Discriminant analysis

Logit analysis

Neural networks

Distance to Default

There has been a constant increase in the attempts that are made to predict bankruptcy because of the deteriorating consequences that are associated with this phenomenon. These consequences include the following: The negative social and economic consequences for the investors and creditors who are associated with the bankrupted organization. The social and economic consequences that the competitors and government, who are associated with the affected organization, would confront. This research will explore various methods that are used for the prediction of bankruptcy. It will highlight the functioning of these models. In addition to that, this paper will also list down the advantages and disadvantages of all of the discussed models as well.

Using Discriminate Analysis and Other Models to Predict Bankruptcy

Introduction

There has been a constant….

Personal Bankruptcy
PAGES 6 WORDS 1885

Personal Bankruptcy
The context of challenging economic times has resulted in sharp increases in the rates of personal bankruptcies filed in the United States (Athreya, 2004). Personal bankruptcy happens when individuals use credit to obtain assets which they are not able to fully pay for because of growing debts due to interest. Interestingly, households generally tend to increase their holdings of debt relative to income, meaning that as household income increases, so does debt. There is an epidemic of over-consumption in the United States, where needs are not distinguished from wants, and instant gratification is easily provided with a swipe of a credit card. Individuals are resorting to borrowing money to pay debts, which creates a cycle that inevitably spirals out of control if not attended to. However, stating that overconsumption is the cause of personal bankruptcy is over-simplifying the matter, as there are several factors that may be involved in….

The recent impositions on personal bankruptcies attracted the attention but the legal experts opined that new rules could have extensive effects. In common, in the words of a bankruptcy lawyer Jon Schneider of Goodwin Procter in Boston, "There is probably going to be a raft of filings in September to avoid this new law." (Law could trigger Chapter 11 surge) D.J. Baker of Skadden Arps a New York lawyer, representing supermarket chain Winn-Dixie in its reorganization opined that these changes will make some companies to fail in Chapter 11.
James Spryaregen of Kirkland & Ellis in Chicago forecasts that the new rules will make it more stringent to raise sufficient financing in bankruptcy and he visualized more liquidation. The Companies subject to Chapter 11 will only find one and half a year during which the management alone can entail a plan for managing a reorganized company. Presently the Judges can….

Continental Bankruptcy
How can one tell if a company is about to go under? There are at least two ways to answer that. One answer (which is usually not terribly precise) is the long-range one. The other is the (usually far more precise) short-term one. This paper provides at least both long-term and short-terms analysis of the Continental Airlines bankruptcy in 1990, relying for the former on an analysis of the state of the American airlines industry in 1990 and for the short-term specific economic information relevant to Continental at the time.

The major overall economic element affected the entire American transportation industry in 1990 (this included not simply the airlines industry) was the issue of deregulation. For many years, the transportation system of the United States existed within an economic system of a high degree of regulation. That this should have been so should not surprise us if we look only….

The other factors are the increased level of expenditure and mismanagement of government revenue.
While Egypt experienced difficulties in servicing of its debts, the European creditors would not allow the country time. In 1875, Ismail shelved payment of interest on loans which forced European creditors, ritain and France, to appoint two people to represent their interests through negotiating new agreements. Egypt continued to service the debts faithfully to an extent that 80% of the country's revenue went to servicing of national debt. The numerous difficulties for Egypt to service the national debt contributed to increased European intervention and subsequent occupation. As European creditors used this as a means of interfering with Egypt's affairs, the Egyptian government was angered, which resulted in more trouble with the European nations and the eventual ritish invasion of Egypt.

In conclusion, Egypt's bankruptcy and occupation is attributed to various factors, especially ritish imperialism in the 19th….

Family Personal Bankruptcy
Traditional sociological models of normative conformity suggest that those who most comply with presumed cultural expectations would be least likely to turn to practices that suggest a failure of their standing. Being in the midst of a normative storm, however, changes the very nature of the environment and even the conditions of those who are living through the commotion. Theoretical models, including social systems theories, can be particularly susceptible to these issues since they are based on the idea that the parts and interactions between those parts are vital for understanding what is happening and what might happen. What this means for people and their finances is not yet clear though they are often tied to business expectations in general (Granovetter, 2005: 34).

evertheless, it can still be safely assumed that if the particularly players (be they individuals, families acting as one, businesses, corporations or even nation-states) were effectively….


3.

Data

The data has been collected from a number od sources. Each year figures on the sale of Chrysler cars is released. The performance of the firm is being assessed using the number of cars sold by the firm each year. This is shown in the first column of table 1 below. The data was taken from a number of different news sources and correlated. The second column, the change in sales has been calculated from the sakes figures, and will provide data which may be used in the assessment.

Three sets of independent variables were collected. The first is the total number of vehicles that were produced in the USD in each of the years, in thousands. The second independent variable is the cost of gasoline. This has been assessed as the cost in cents on a per mile basis, given at current prices. Both the production levels and cost of….

" When a person files for bankruptcy, a person's trust, conscience, moral responsibility and accountability are all jeopardized.
Trust

Trust has always been an important factor in any credit transaction. With the increase of informal credit sales such as credit cards, trust is crucial between the debtor and the creditor for the liquidity of the transaction. In earlier days, economic trust was interpreted as strong as other forms of human interaction such as neighborliness, friendship and marriage.

Economic trust was not thought of as a purely pragmatic relationship but was applied to a much broader spectrum of necessary social interaction. But, with declining morals in the country, it has become more acceptable to break this trust by filing bankruptcy when personal debts are too large.

Robert South writes, "without (trust) there can be no correspondence maintained either between societies or particular persons."

The basis of trust in promises and all other forms of human obligation….

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3 Pages
Essay

Economics

Bankruptcy Reform Act of 2005 and Explaining

Words: 1043
Length: 3 Pages
Type: Essay

Bankruptcy eform Act of 2005 and Explaining Why Congress Instituted This Act When an individual or a firm comes to a financial situation where its assets are unable to cover…

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20 Pages
Term Paper

Economics

Bankruptcy Concept History and Evolution

Words: 5371
Length: 20 Pages
Type: Term Paper

It provided for fast proceedings, encouraged debtors to reschedule their obligations rather than liquidate and helped creditors recover their claims against bankrupt estates. The 1994 Act also created…

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10 Pages
Term Paper

Economics

Bankruptcy Law for Municipalities Chapter

Words: 3184
Length: 10 Pages
Type: Term Paper

The same officials that controlled the municipality prior to the filing continue to run it, and the bankruptcy court has no authority to intervene or to deviate from…

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4 Pages
Term Paper

Economics

Bankruptcy in 2004 Interstate Bakeries

Words: 1104
Length: 4 Pages
Type: Term Paper

Similarly, establishing payment plans with vendors may help reduce monthly costs and free up extra cash. The benefit of such restructuring is that it would allow the company…

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6 Pages
Term Paper

Business

Bankruptcy of Women First Health Care Inc

Words: 1765
Length: 6 Pages
Type: Term Paper

ankruptcy of WomenFirst Health Care, Inc. Women First HealthCare, Inc. entered the American business scene in 1996 and its declared mission was to "to help midlife women make informed choices…

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1 Pages
Term Paper

Economics

Bankruptcy May Occur When People or Businesses

Words: 371
Length: 1 Pages
Type: Term Paper

Bankruptcy may occur when people or businesses that are financially-distressed may have their debt eliminated in part or altogether. The number of bankruptcy filings for the fiscal year ending…

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3 Pages
Essay

Economics

Bankruptcy There Are Essential Two Primary Purposes

Words: 764
Length: 3 Pages
Type: Essay

bankruptcy? There are essential two primary purposes for the existence of federal bankruptcy laws. The first purpose is to provide debtors with a legally recognized method for discharging their…

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10 Pages
Research Paper

Economics

Models to Predict Bankruptcy

Words: 3285
Length: 10 Pages
Type: Research Paper

Discriminate Analysis and Other Models to Predict Bankruptcy Type of Data Used Selection of Keywords Authenticity and Validity Methods Used for the Prediction of Bankruptcy Discriminant analysis Logit analysis Neural networks Distance to Default There has been…

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6 Pages
Essay

Economics

Personal Bankruptcy

Words: 1885
Length: 6 Pages
Type: Essay

Personal Bankruptcy The context of challenging economic times has resulted in sharp increases in the rates of personal bankruptcies filed in the United States (Athreya, 2004). Personal bankruptcy happens when…

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5 Pages
Term Paper

Economics

New Bankruptcy Law 2005 the

Words: 1868
Length: 5 Pages
Type: Term Paper

The recent impositions on personal bankruptcies attracted the attention but the legal experts opined that new rules could have extensive effects. In common, in the words of a…

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7 Pages
Term Paper

Transportation

Continental 1990 Bankruptcy

Words: 2040
Length: 7 Pages
Type: Term Paper

Continental Bankruptcy How can one tell if a company is about to go under? There are at least two ways to answer that. One answer (which is usually not terribly…

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5 Pages
Essay

History - Israel

Egypt -- Bankruptcy and Occupation

Words: 1584
Length: 5 Pages
Type: Essay

The other factors are the increased level of expenditure and mismanagement of government revenue. While Egypt experienced difficulties in servicing of its debts, the European creditors would not allow…

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2 Pages
Introduction

Family and Marriage

Family Economics Personal Bankruptcy

Words: 580
Length: 2 Pages
Type: Introduction

Family Personal Bankruptcy Traditional sociological models of normative conformity suggest that those who most comply with presumed cultural expectations would be least likely to turn to practices that suggest a…

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3 Pages
Essay

Transportation

Chrysler's Bankruptcy Classification of Data

Words: 1074
Length: 3 Pages
Type: Essay

3. Data The data has been collected from a number od sources. Each year figures on the sale of Chrysler cars is released. The performance of the firm is being assessed…

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11 Pages
Term Paper

Economics

Moral Implications of Bankruptcy as

Words: 3139
Length: 11 Pages
Type: Term Paper

" When a person files for bankruptcy, a person's trust, conscience, moral responsibility and accountability are all jeopardized. Trust Trust has always been an important factor in any credit transaction. With…

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