Will My Employer Find Out
Not necessarily. The most likely way would be if a creditor has sued you and is garnishing your wages. If the garnishment stops due to bankruptcy proceedings, your employer has to be notified since it cuts your checks.
But if your wages are being garnished, your employer already knows youre under financial stress and might be relieved you have filed for bankruptcy to start digging yourself out.
With Chapter 13, the court could order that payments be automatically deducted from your wages and sent to creditors. But the bankruptcy code has rules that prohibit employers from discriminating against employees based solely on bankruptcy filings.
Trump Plaza Hotel In Manhattan
At the same time that Trump was struggling financially with casinos in Atlantic City, he was also facing challenges in New York City. His Trump Plaza Hotel on Fifth Avenue was $550 million in debt and behind on its payments. The hotel filed Chapter 11 bankruptcy in November 1992.
As part of the Chapter 11 plan, Trump lost his 49% stake in the hotel. He was still allowed to call himself CEO, but he didnât have any say in the hotelâs business operations and didnât get paid. In return, Trumpâs creditors agreed to more favorable terms for the hotelâs debts.
Eight Us Presidential Bankruptcies You May Have Missed
When we think of the office of president, we often think that only wealthy men can attain it. Barack and Michelle Obama have signed deals worth tens of millions of dollars, George W. Bush retired to his Texas ranch, Bill Clinton founded the Clinton Foundation, and Jimmy Carter still teaches Sunday school in Georgia. We have the idea that those who leave the office, and those who come to it, have little to worry about in terms of finances and comfort in their post-political years. However, while distinctly in the minority, at least eight presidents have experienced financial hardship and even presidential bankruptcies.
Recommended Reading: Nortel Epiq
The Trump Entrepreneur Initiative
The now-defunct Trump Entrepreneur Initiative was once known as Trump University. The for-profit education company offered courses in real estate, asset management, entrepreneurship, and wealth creation.
The company was not an accredited school and did not offer high school or college credits.
The company was embroiled in an ongoing, high-profile scandal during Trumps presidential campaign, and it continued into his tenure as president.
The Trump Entrepreneur Initiative faced a lawsuit in 2013alleging illegal business practices. The New York state attorney general filed a $40 million civil suit that alleged the corporation made false promises to its students.
A New York judge found Trump personally responsible. In late March 2017, when Trump was serving as president, a judge approved a $25 million settlement for the defrauded students.
Trump Ice Natural Spring Water
Trump Ice was a bottled water brand. The winner of The Apprentice Season 2, Kelly Perdew, served as executive vice president of the organization.
The companys website no longer exists, and the product can no longer be found in national grocery chains or stores but some can still be found on eBay and other auction sites.
The company was used as a gimmick in the shows first season when contestants marketed and sold the product.
You May Like: Renting A Home After Bankruptcy
One Decade Of Business Dealings
A useful snapshot is Trump’s record during the 10 years before he won the presidency. From 2006â2016, The New York Times went through every business deal that the Trump Organization announced or that was reported.
The 60 deals reflected a highly uneven track record of business success: “One-third of them never got off the ground or soon petered out. Another third delivered a measure of what was promisedâbuildings were built, courses taught, a product introducedâbut they also encountered substantial problems, like lawsuits, government investigations, partnership woes, or market downturns…The remaining third, while sometimes encountering strife, generally met expectations,” according to The New York Times.
Any deeper examination of the former president’s business record would be incomplete without looking at his series of high-profile bankruptcies and other failures. Below is a list of some of the highlights, although it is by no means comprehensive.
Due To His Indebtedness His Reliance On Income From Overseas And His Refusal To Authentically Distance Himself From His Hodgepodge Of Business Trump Represents A Profound National Security Threat
In a tour de force of hard won reporting, the New York Times has put numerical clothing on what weve known about President Donald Trump for decades that, at best, hes a haphazard businessman, human billboard and serial bankruptcy artist who gorges on debt he may have a hard time repaying.
The Times, in a news story published Sunday evening that disclosed years of the presidents tax returns, also put a lot of clothing on things we didnt know. Trump paid just $750 in federal income taxes in 2016, the year he was elected president, and the same amount …
TO READ THE FULL STORY, NOW AT JUST Rs
Key stories on business-standard.com are available to premium subscribers only.
Already a premium subscriber?
Read Also: How To File For Bankruptcy In Oregon
Donald Trump Is The King Of Bankruptcy Filings Destroying Many Lives Along The Way
Donald Trump spewing his birther-crap again just for attention, is seriously defensive when asked about his bankruptcies over the past two decades. Trumps Taj Mahal Hotel was built by Trump selling bonds to raise over 800 million dollars, then declaring bankruptcy which turned the bonds into junk-bonds. For all of Trumps hyperboles about his riches, if you and I did what he has done we would be imprisoned for life years ago!
For legendary tycoons, Donald Trump tops the list, but how many times has Donald Trump filed for bankruptcy? The 90s recession wasnt picky about who it affected. Donald Trump felt the pinch as well. His decision to use high interest bonds to finance the assembly of the Taj Mahal casino caused life to get very stressful for the tycoon.
In 1991, unable to pay a $3.5 billion loan, he declared business bankruptcy. He also came close to filing personal ruin. At the time, his personal debt was estimated to be around $900 million. Due to the bankruptcy, banks and bondholders lost millions. They came to a compromise with Donald Trump. The banks gave him lower interest rates and a longer time frame to repay the debt and Donald Trump gave the investors half the ownership of the Taj Mahal. In mere months the casino was back in business.
Posted on: Apr. 23, 2010
No Personal Involvement!
Fourth Time’s A Charm: How Donald Trump Made Bankruptcy Work For Him
Trump Plaza, Atlantic City. Image via Flickr.
Here at FORBES, we’ve been tracking Donald Trump‘s wealth since the inaugural Forbes 400 rich list in 1982. Today, we value him at $2.7 billion, although he claims he’s worth far more. One question we’re often asked when talk turns to Trump’s fortune: how can a man who has been bankrupt so many times remain a multi-billionaire? How is he worth more now, post-bankruptcies? We spoke to bankruptcy lawyers and casino industry experts — some of whom have had firsthand involvement in Chapter 11 cases connected to Trump — in an attempt to explain how he has survived corporate bankruptcies and thrived in the aftermath.
1. It’s nothing personal…
First things first: Donald Trump has filed for corporate bankruptcy four times, in 1991, 1992, 2004 and 2009. All of these bankruptcies were connected to over-leveraged casino and hotel properties in Atlantic City, all of which are now operated under the banner of Trump Entertainment Resorts. He has never filed for personal bankruptcy — an important distinction when considering his ability to emerge relatively unscathed, at least financially.
“Corporations, limited partnerships, and LLCs in which he had an ownership interest or companies that had his name attached have filed for bankruptcy,” said Michael Viscount of Atlantic City law firm
In Presidential Bid)
2. …it’s just business.
3. It’s better than the alternative.
4. He’s leveraged his persona.
6. He’s not the one to blame.
Don’t Miss: How Many Times Has Donald Filed Bankruptcy
Breach Of Contract Matters
In 2013 Trump sued comedian Bill Maher for $5 million for breach of contract. Maher had appeared on The Tonight Show with Jay Leno and had offered to pay $5 million to a charity if Trump produced his birth certificate to prove that Trump’s mother had not mated with an orangutan. This was said by Maher in response to Trump having previously challenged Obama to produce his birth certificate, and offering $5 million payable to a charity of Obama’s choice, if Obama produced his college applications, transcripts, and passport records. Trump produced his birth certificate and filed a lawsuit after Maher was not forthcoming, claiming that Maher’s $5 million offer was legally binding. “I don’t think he was joking,” Trump said. “He said it with venom.” Trump withdrew his lawsuit against the comedian after eight weeks.
In 2015, Trump sued Univision, demanding $500 million for breach of contract and defamation when they dropped their planned broadcast of the Miss USA pageant. The network said that the decision was made because of Trump’s “insulting remarks about Mexican immigrants”. Trump settled the lawsuit with Univision CEO Randy Falco out of court.
Disputes with both chefs were eventually settled in April 2017.
How Much Cash Can I Keep
It depends on the exemption amount in your state. Most states allow some amount of cash to be kept under either Chapter. Keep in mind that some financial institutions may be able to take money from your accounts held with them to satisfy debts to them.
There are some exemptions, like child support payments, alimony and public benefits like Social Security, disability payments and unemployment.
Retirement accounts and pensions are also protected, so at least you wont have to start dining at the local soup kitchen if youre over 65 and bankrupt.
Recommended Reading: Filing For Bankruptcy In Idaho
Trump Ruffin Tower Llc
- 2019 Revenue: $27,677,448, divided between $4,414,500 in condo sales and $23,262,948 in hotel revenue
- 2018 Revenue: $28,558,298, divided between $6,002,244 in condo sales and $22,556,054 in hotel revenue
- 2019 Asset Value: Over $50,000,000
- Business Type: Hotel and Condominium Complex
Trump Ruffin Tower LLC manages the Trump International Hotel and Tower in Las Vegas. Constructed in 2008, the tower is a combination hotel and condominium development.
It struggled as the Great Recession hit when it opened more than a decade ago, devastating the real estate market. Plans for a second tower were scrapped.
No Bankruptcy Is Not Synonymous With Success
Conversely, the absence of bankruptcy declarations is not an indicator of success, as many businesses fail without going through bankruptcy proceedings. A failed business may simply cease operations with the owners and investors absorbing the losses a troubled business on the brink of going under may seek to merge with another company that has the resources to keep it afloat and out of bankruptcy or a dying business may be bought up by another, stronger company, seeking to breathe new life into it or simply to acquire its assets.
And since many business conglomerates comprise multiple companies each of which may offer many different product lines a given company or product may fail spectacularly and rack up losses in the hundreds of millions of dollars without necessarily sending their corporate parents reeling into bankruptcy.
Finally, all bankruptcies are not created equal. A small startup partnership that doesnt quite take off soon enough and seeks bankruptcy protection is quite a different kettle of fish than the corporate entity that is mismanaged so badly and/or for so long that it racks up billions of dollars in debt before going Chapter 11.
Don’t Miss: Declaring Bankruptcy In Va
New Report Details Decades Of Presidents Taxes And Financial Failures
On Sunday, The New York Times published a blockbuster report on the Presidents tax returns, revealing details from decades of confidential filings and information related to Trumps businesses. The report paints a picture of a president whose business interests are in financial distress and whose looming money challenges could push him into bankruptcy in the near future. The findings pose a troubling, but important, question to ask:
Is President Trump actually broke?
The explosive reporting by The New York Times is based on a review of two decades of Trumps personal and corporate tax record, ranging from his days as a high-profile real estate developer to the beginning of his tenure as President. In publishing their findings, the Times explained the rationale behind their decision.
We are publishing this report because we believe citizens should understand as much as possible about their leaders and representatives their priorities, their experiences and also their finances. Every president since the mid-1970s has made his tax information public, the Times wrote in an editors note accompanying the report. Mr. Trump, one of the wealthiest presidents in the nations history, has broken with that practice.
The Times added, The records show a significant gap between what Mr. Trump has said to the public and what he has disclosed to federal tax authorities over many years.
Dont Miss: When To Buy A Car After Bankruptcy
Bankruptcy Judge Weighs Nra Case
The National Rifle Association, long a feared power broker, will learn its fate this week in a court ruling that has the potential to hobble the gun-rights group and imperil the three-decade reign of its boss, Wayne LaPierre.
A judge is weighing several options. He could let the NRAs bankruptcy case go forward, giving the group a measure of refuge from a New York lawsuit that threatens its assets and its existence. He could put the group under the control of a trustee, empowered to make decisions about its finances and its future. Or, in a highly unusual move, he could throw the NRA out of bankruptcy court altogether.
There are land mines across the board here, said Brian Mittendorf, an Ohio State University accounting professor who has looked closely at the NRAs financial health.
For an organization that was until recently the most potent single-issue lobby in the U.S., none of the possible outcomes are great. The NRA has enjoyed enormous sway in Washington, beating back repeated attempts at stricter gun laws after mass shootings and building a fervent following closely tied to the Republican Party. It has spent millions of dollars to back candidates for president and Congress and on Supreme Court confirmation fights, and it was the largest financial backer of former President Donald Trumps successful 2016 campaign.
The NRA has called the suit a baseless attack on the Second Amendment, timed to have maximum impact during the election cycle.
Also Check: Diy Bankruptcy Software
Allegations Of Business Links To Organized Crime
Trump maintained a connection with organized crime members to supply the concrete for Trump Tower. According to former New York mobster Michael Franzese, “the mob controlled all the concrete business in the city of New York,” and that while Trump was not “in bed with the mob … he certainly had a deal with us. … he didn’t have a choice.”Mafia-connected union boss John Cody supplied Trump with concrete in exchange for giving his mistress a high-level apartment with a pool, which required extra structural reinforcement. Trump admitted in 2014 that he had “had no choice” but to work with “concrete guys who are mobbed up.” He further stated that “I don’t like getting close to people like that, but they respected me.”
Trump’s lawyer Roy Cohn represented several mobsters in the past such as Carmine Galante, John Gotti, Anthony Salerno, possibly also representing Paul Castellano and Vincent Gigante. Cohn allegedly used his underworld connection to help Trump build Trump Tower.
Journalists David Cay Johnston and Wayne Barrett, the latter of whom wrote an unauthorized 1992 Trump biography, have claimed that Trump and his companies did business with New York and Philadelphia families linked to the Italian-American Mafia. A reporter for The Washington Post writes, “he was never accused of illegality, and observers of the time say that working with the mob-related figures and politicos came with the territory.”
Business Career Of Donald Trump
|This article is part of a series about|
Donald Trump is an American businessman and television personality. He was the 45th president of the United States. He began his real estate career at his fatherâs company, Elizabeth Trump and Son, which he later renamed the Trump Organization. He rose to public prominence after concluding a number of highly publicized real estate deals in Manhattan, and his company now owns and licenses his name to lodging and golf courses around the world. Trump partly or completely owned several beauty pageants between 1996 and 2015. He has marketed his name to many building projects and commercial products. Trumpâs unsuccessful business ventures have included numerous casinos and hotel bankruptcies, the folding of his New Jersey Generals football team, and the now-defunct Trump University.
After being inaugurated as U.S. president in January 2017, Trump resigned all management roles within the Trump Organization, and delegated company management to his sons Donald Jr. and Eric. However, Trump retained his financial stake in the work document, leaving ongoing concerns about possible conflicts of interest.
Recommended Reading: Trump Bankruptcy Record
How Much Do You Know About President Trump
What is Donald Trump’s middle name?
In what year was construction completed on the Trump Tower on Fifth Avenue in Manhattan?
How many times has Donald Trump been married?
Which conspiracy theory did Donald Trump NOT help to spread about Barack Obama?
- Obama isn’t a U.S. citizen
- No one could remember Obama attending Columbia University
- Obama was married to a Kenyan princess
Who produced “The Apprentice” with Donald Trump?
What sitcom did Donald Trump’s ex-wife, Marla Maples, appear on?
- The Golden Girls
Who is Tiffany Trump’s mom?
- Melania Trump
How many siblings does Donald Trump have?
Where was Donald Trump born?
Where was Donald Trump’s mother born?
How many times has Donald Trump filed for bankruptcy for his business ventures?
What action did aldermen in Chicago take after Trump disparaged the city during a presidential debate?
- Banned him from the city
- Made him pay a fine and apologize
- Removed the honorary street sign bearing his name
Who did Trump hire as his 2016 campaign manager after Corey Lewandowski?
- Kellyanne Conway
How many golf courses is it estimated that Trump owns?
What move did Trump convince other owners in the USFL to make that ultimately led to the failure of the fledgling league?
- Move the schedule to the fall to compete with the NFL
- Only schedule five games per season
- Charge twice as much as the NFL for tickets
Trump has acted as a financial advisor to which professional boxer?
- Leon Spinx
- $15 million