Monterey Bankruptcy Attorney Discusses More Corporate Bankruptcies Expected In the United States, According To New Report
Monterey Bankruptcy Attorney Discusses More Corporate Bankruptcies Expected In the United States, According To New Report
The American Bankruptcy Institute and the Dow Jones' Daily Bankruptcy Review are saying to expect a wave of corporate bankruptcy filings in the next six to eighteen months. Bankruptcy experts are attributing the expected rise of loan default rates to be one reason for the predicted increase of filings.
In general, there are two major types of bankruptcies that a company will file. Chapter 7 bankruptcy and Chapter 11 bankruptcy.
Chapter 11 bankruptcy allows a debtor to stay in business and avail of bankruptcy protection while they work out a plan to increase their profitability and decrease their debts. They are also required to work out and follow a bankruptcy reorganization plan that they must develop while working with an appointed committee.
Public companies will usually file under Chapter 11, because it allows them to run their business while supervising its reorganization as they implement a plan to pay their debts. Should their efforts fail, however, a company could be forced to liquidate its assets so that the debts still are paid.
If a company files for Chapter 7 bankruptcy, they must cease all operations and close down their business completely. A trustee is appointed to liquidate a company’s assets to pay its debts.
If you’d like to find out more information about a specific company that has declared bankruptcy that might affect you, the U.S. Securities and Exchange Commission suggests that you go to the following sources:
· The Company - Contact the investor relations department in the company's home office. They can give you more information on the bankruptcy proceeding, including the name, address, and phone number of the court handling the bankruptcy.
· Your Broker - If you can't find information in the newspaper or the library, or you haven't received any correspondence from the company, call the person who sold you the investment.
· The SEC - Companies file regular reports with the SEC in a computer database known as EDGAR. You can also request a copy of Form 8-K or any other reports that the company files with the SEC, from the SEC's Public Reference Room, 100 F Street NE, Washington, D.C. 20549-0102, call (202) 551-8090, or e-mail: publicinfo@sec.gov.
· Bankruptcy Court - If the company is in Chapter 7 and has not filed reports with the SEC, or you need more information, the bankruptcy court itself is another source. This court is usually located where the company has its main place of business or where the company is incorporated.
· U.S. Trustee at the Department of Justice - The U.S. Trustee has broad administrative responsibilities in bankruptcy cases.
· A Securities or Bankruptcy Attorney - You may want to talk to an attorney, especially if you believe that the debtor defrauded you and you want to know your legal options.
Sagaria Law, P.C. handles bankruptcy cases in Monterey County, Alameda County, and Santa Clara County. Contact Sagaria Law, P.C. today for a free consultation.
Wave Of Corporate Bankruptcies Seen On Horizon, , Chicago Tribune.com, November 10, 2006
An Overview Of Corporate Bankruptcy, Investopedia.com
Corporate Bankruptcies, U.S. Securities And Exchange Commission
Related Web Resources:
U.S. Code: Title 11, Chapter 11—Reorganization, Law.Cornell.Edu
U.S. Code: Title 11, Chapter 7—Liquidation, Law.Cornell.Edu
