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Who Has Filed The Most Bankruptcies

Of The Biggest Companies To File For Bankruptcy

J. Crew has filed for bankruptcy, here’s what’s next for the company

In the last few years we have seen the disappearance of many different businesses. For example, well never get to go to another Blockbuster or eat a toasty Quiznos sub because nobody seems to be safe

In the last few years we have seen the disappearance of many different businesses. For example, well never get to go to another Blockbuster or eat a toasty Quiznos sub because nobody seems to be safe from Americas persistent financial crisis, especially big businesses. The reasons behind these big financial downfalls ranges from overambitious expansion tactics, to CEOs that dont like to follow the law, to a lot of bad circumstances heaped into one. Some of these companies were just too big to fail and managed to bounce back after disastrous events. Others, have most likely disappeared forever, stuck in the graveyard of businesses gone wrong. Whatever their reason for filing for bankruptcy, these big businesses were in more debt than most of us could ever dream of. So to remind us of all the businesses that we might never see again, here is a list of ten big time companies that have filed for bankruptcy.

Bankruptcy Filing Demographic Statistics

Consider the following statistics about filing bankruptcy from Debt.org:

  • More than 64% of bankruptcy filers are married.
  • Those younger than 25 made up less than 2% of filers. About 20% of filers are 55 years or older. The median age is about 45.
  • People ages 65 and older make up about 8% of filers. Those ages 34 and younger make up about 19% of filers.
  • Women are slightly more likely to file than men: 52% vs. 48%.
  • 60% make $30,000 or less annually. Almost 10% of filers made $60,000 or more.
  • 20% of bankruptcy filers held a bachelor’s degree or higher.
  • 29% had some college education.
  • 36% had a high school education level.
  • 16% are repeat bankruptcy filers.

Bankruptcy affects all age groups and all socioeconomic classes. In fact, it’s easy to argue that there is no one “average” or typical bankruptcy filer. But if we were to build one, she would likely be a middle-aged married woman, who graduated from high school and makes less than $30,000 per year.

Even so, the statistics bear out that outside circumstancesmore so than age, income, or educational levelplay a huge role in decisions to file or not file.

Expert Advice On Bankruptcy

Many factors inform the decision to file for bankruptcy. MoneyGeek gathered advice from professionals with expertise in business, economics and finance to answer pressing questions about bankruptcy. These specialists offer solutions and guidance for businesses and individuals looking to make major financial decisions.

  • What resources would you recommend for individuals going through bankruptcy now or who anticipate filing for bankruptcy soon?
  • For businesses encountering financial difficulties, what actions do you advise to avoid bankruptcy?
  • How can families, individuals and businesses recover after bankruptcy?
  • What additional advice would you offer to people who are struggling financially and weighing bankruptcy as an option?
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    Personal Bankruptcy Statistics For 2020

    By: Lyle Daly | Updated March 24, 2020

    Many or all of the products here are from our partners that pay us a commission. Its how we make money. But our editorial integrity ensures our experts opinions arent influenced by compensation. Terms may apply to offers listed on this page.

    Bankruptcy is a last resort for consumers in financial distress, giving them a chance to liquidate their debts and have a fresh start. That opportunity comes at a cost, both in what consumers pay to file bankruptcy and in the damage it does to their credit score — and getting access to credit with a bad credit score can be difficult for many years.

    How many people file bankruptcy every year? Are some demographics more likely to file bankruptcy? And what’s the most common cause?

    If you think the answer to that last one is medical debt, you’ll soon learn that’s something many news articles have gotten wrong.

    In this analysis, we’ll be exploring the most important personal bankruptcy statistics dating back to the 1980s.

    What Factors Lead To Personal Bankruptcy Filings

    Bankruptcy Timeline

    Because filing a bankruptcy case can be a huge decision with long-lasting consequencespositive and negativepeople who are contemplating filing bankruptcy often want to know if their reasons for filing are typical, reasonable, or sound.

    An American Journal of Public Health study reported that 66.5% of all bankruptcies were tied to medical issues. This includes medical debt itself in addition to the loss of income/wages from time off work. However, medical debt is far from the only reason people file for bankruptcy.

    Other leading factors that contribute to bankruptcy filings include unemployment and domestic issues like divorce. Many of these factors involve circumstances the filer could not control.

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    What Debts Cannot Be Discharged In Bankruptcy

    The following debts cannot be discharged in either a Chapter 7 or a Chapter 13 bankruptcy case. If you file Chapter 7, you will still owe these debts after your case is over. If you file Chapter 13, these debts will either be paid in full during your plan, or the balance will remain at the end of your case.

    Nondischargeable debts include:

    • Unlisted debts, unless the creditor had knowledge of your bankruptcy filing.
    • Recent income tax debt and other tax debt.
    • Fines imposed for violating the law.
    • Student loans, unless you can show that it will cause a hardship for you to repay them.
    • Debts you owe under a divorce decree or settlement.

    In a Chapter 7 and 13 case, a creditor may object, and a judge may agree, to theseadditional debts being discharged:

    • Debts incurred by embezzlement, fraud, or larceny.
    • Certain credit purchases made within 90 days or cash advances made within 70 days of filing.
    • Restitution or damages awarded in a civil action for willful or malicious injury to a person.

    Legal And Institutional Factors

    Bankruptcy law during the first part of the 20th century was established by the 1898 Bankruptcy Act, the first permanent bankruptcy law in the United States. Although this law dealt primarily with corporate bankruptcies, the legal provisions for personal bankruptcies, which were arguably weak, were of little concern because of the extremely low rate of personal bankruptcies during the first part of the century.

    The rise in personal bankruptcies in the 1920s and 1930s, along with growing corruption and legal challenges regarding corporate bankruptcy filings during the Great Depression, prompted passage of the Chandler Act in 1938. The Chandler Act created a host of new options for those filing for personal bankruptcy, such as alternatives to complete liquidation and a greater ability to file voluntary petitions.

    The increased availability of consumer credit, especially in the form of credit cards, has occurred since the 1950s. Although proprietary charge cards were available in the early 1900s, the use of these cards was traditionally limited to a single store. Also, many of these cards did not have the feature of revolving credit. The first general purpose credit card was introduced in 1966. In 1970, only 16 percent of households had a credit card compared with over 70 percent of households in 2000.

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    Debt That Arising After The Bankruptcy Filing:

    • Car accident. Two months after the debtor filed a bankruptcy case, the debtor caused an accident that totaled your car.
    • New debt. Three months after filing for bankruptcy, the debtor asked you for a loan but failed to pay it back.

    In both of these cases, you can file a lawsuit because the incident took place after the debtor filed the bankruptcy case.

    Are People From Some Demographics More Likely To Experience Bankruptcy Than Others

    Detroit has filed for Chapter 9 bankruptcy

    Bankruptcy is available to everyone, regardless of race, age, or marital status. And many different types of people use this legal tool to get debt relief. Even so, people from certain demographics are more likely to go through the bankruptcy process. According to Debt.org, typical filers earn less than $30,000 a year and are:

    • Between 38-45 years old

    • Male

    • At least high school educated some have attended college as well

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    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 Castle Associates 1992

    In less than a year he was back in bankruptcy court for his other Atlantic City casinos. This bankruptcy included the Trump Plaza Hotel in New York, the Trump Plaza Hotel and Casino in Atlantic City as well as the Trump Castle Casino Resort. He gave up half his interest in the New York Plaza to Citibank, but retained his stake in the casinos.

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    Bankruptcy And State Court Lawsuits

    If the lawsuit was already pending when the debtor filed the bankruptcy caseâand it pertains to an issue other than a debt that will be discharged in the bankruptcy, as discussed aboveâthe parties have the option of choosing how to go forward. They can:

    • dismiss the lawsuit
    • ask the bankruptcy court for permission to continue the state court suit, or
    • move the lawsuit to the bankruptcy court.

    If the debtor filed for bankruptcy before the filing of a lawsuit, the parties can:

    • file an adversary proceeding , or
    • bring the action in another court after first getting permission from the bankruptcy court.
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    Could I Declare Section 13 Bankruptcy Proceeding If I Have Filed For Case Of Bankruptcy Before

    Can You File Bankruptcy Twice Under The Same Chapter?
    • Could I declare section 13 ban …

    Could I declare section 13 bankruptcy proceeding if I have filed for case of bankruptcy before?

    Quick Address: Yes. Should you shell out your financial situation punctually later on, you need to be able to re-establish good credit in as little as a couple of years. I have most customers which can get their credit score to the mid-600s after twelve months, and in to the 700s after 2 years.

    You must keep their nose clean and never default on any future bills. And in case you have defaulted credit that continue to your own credit score rating after bankruptcy, for example defaulted student education loans or youngster support that was maybe not discharged, you should see those out-of default in the event that you expect to get a good credit score straight back.

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    How Long Will It Take For My Credit Score To Rebound

    The exact numbers vary, but it really depends on your starting point. A good credit score will likely drop more than 200 points. A lower score will drop between 130 and 150 points. Just about everybody who files for bankruptcy ends up with a credit score somewhere south of 600, some of them way south.

    This can mean paying much higher interest rates on loans, assuming youd even qualify for them.

    A Chapter 7 bankruptcy stays on your credit report for 10 years. A Chapter 13 stays on for seven years, but you can rebuild your credit over time by managing your debt smartly.

    The best place to start is by making on-time payments and bringing past due accounts up to date. That is the biggest factor in your credit score.

    The impact of bankruptcy lessens over time because some of your debt is reduced or discharged. That reduces your credit utilization ratio, which determines 30% of your credit score. FICO estimates it takes about five years for a score that was 680 to fully recover from a bankruptcy filing.

    Grounds For Pursing And/or Preventing A Contractor From Escaping Liability In Bankruptcy Court For His Fraudulent Or Willful And Malicious Conduct On A Construction Project

    While most Bankruptcies maybe filed for legitimate reasons bypersons in genuine financial distress beyond their own control, others use Bankruptcyto tryto escape liabilityfor their own fraud or misconduct.

    Sometimes, unfortunately, manyhomeowners and other victims of afraudulent or dishonest contractor, and even their attorneys, simply give up when they learn of a Bankruptcy filing by a wrongdoer.

    While the Bankruptcy filing does automatically stop or stay, at least temporarily, most lawsuits against the wrongdoing contractor or debtor, that is NOT necessarily the end of your right to pursue a claim for damages.

    The debtor maystill have known assets to payall or part of your claim, so timelyfiling and pursuingyour claims in BankruptcyCourt – with the aid of a Bankruptcyattorney- mayyield at least some money.

    Additionally, if the Bankrupt contractor had Liability Insurance which might cover the defective construction or other personal injury or property damage caused by the contractor, the Bankruptcyfiling does not relieve the debtors insurer from the obligation to defend the case and to pay valid claims covered bythat policy or those policies.

    If successful in such a proceeding, you could still pursue the debtor indefinitely on your claims, even if it otherwise receives a discharge of all its other debts!!

    To prevail on a non-dischargability action for fraud under section 11 U.S.C 523, a creditor must demonstrate five elements:

  • an intent to deceive
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    States With High Numbers Of Bankruptcies

    The number of annual bankruptcies varies widely by state. This is in part because bankruptcy policies are different in each state and because some states are more populous than others.

    Additionally, studies have found that bankruptcy occurs more often in states with more lenient wage-garnishment laws.

    The state with the most bankruptcies in 2011 was California, with more than 240,000. This accounted for 17 percent of all bankruptcies nationwide. At the other end of the spectrum, Alaska had fewer than 1,000 bankruptcies in the same year.

    The five states with the most bankruptcy petitions in 2011 accounted for a disproportionate 38 percent of the years filings nationwide.

    These states and the number of bankruptcies declared in 2011 are as follows:

    Different Types Of Bankruptcy

    RadioShack Has Filed for Bankruptcy – IGN News

    For individuals, there are two main types of bankruptcy cases. Most individual debtors file for Chapter 7, which can also be described as âstraightâ bankruptcy or âliquidation.â Under this plan all non-exempt assets are converted to cash , and secured creditors may have the item they financed turned over to them , unless the debtor reaffirms the debt with the courtâs approval prior to obtaining a discharge. Chapter 13, also called âreorganization,â is an option for people with regular income and debts that are less than the limits allowed by law. When you complete a Chapter 13 plan, you have the satisfaction of keeping your assets, paying your creditors, and possibly discharging some of your debts.

    Bankruptcy is a serious step. If you choose to file Chapter 7 or Chapter 13, you will probably need to hire an attorney. Be sure to find an attorney who has experience handling the type of bankruptcy case you plan to file. The following overview of Chapter 7 and Chapter 13 will give you some idea of whatâs involved.

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    East Asia And Oceania

    Despite massive populations and strong economies, countries like China and India remain mostly unfree economies. The modest improvements in scores over the last few years have been through gains in property rights, judicial effectiveness, and business freedom indicators.

    Nearby, Singapores economy has been ranked the freest in the world for the second year in a row. Singapore remains the only country in the world that is considered economically free in every index category.

    Finally, its worth noting that Australia and New Zealand are regional leaders, and are two of only five nations that are currently in the free category of the index.

    Oil and Gas $21B

    The two biggest companies in Russia, gas producer Gazprom and banking and financial provider Sberbank, have consistently been the largest enterprises in the country.

    In November, Gazprom was bigger with a market cap of $118 billion compared to Sberbanks $112 billion, though they constantly switch places over time.

    But other than Sberbank and tech provider Yandex, the top 10 was composed entirely of oil, gas and mining companies.

    Used Little Of Own Money

    The New York Times, which conducted an analysis of regulatory reviews, court records, and security filings, found otherwise, however. It reported in 2016 that Trump “put up little of his own money, shifted personal debts to the casinos and collected millions of dollars in salary, bonuses, and other payments.

    “The burden of his failures,” according to the newspaper, “fell on investors and others who had bet on his business acumen.”

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