Comments on: How to hold companies under bankruptcy protection accountable? http://www.bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable Bankruptcy | Debts Mon, 09 Mar 2009 22:57:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: davidw_ctr http://www.bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable/comment-page-1#comment-546 davidw_ctr Thu, 05 Mar 2009 21:31:22 +0000 http://bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable#comment-546 Title 11 of the United States Code contains provisions that hold individuals accountable for their actions with respect to bankruptcy filings. There are many provisions under Title 11 that protect creditors from unscrupulous borrowers. In addition, most cautious lenders require that the owners of a company sign personal guarantees on money borrowed by the company. Most business loans are "secured" or guaranteed by the items purchased with the money borrowed. If the company doesn't pay, the lender reclaims the collateral. The most recent incarnation of the bankruptcy code ("BAPCPA") was written by the creditor lobby. You can bet your bottom dollar that they wrote many provisions into the Bankruptcy Code that protect their interests. In fact, many legal scholars are complaining that the Bankruptcy Code is now too tough on debtors and favors creditors unnecessarily. Plus bankruptcy fraud is investigated by the Department of Justice and FBI. When any company files bankruptcy a plethora of very smart individuals inevitably take a close look at the books looking for signs of fraud or any other misdeeds. Title 11 of the United States Code contains provisions that hold individuals accountable for their actions with respect to bankruptcy filings. There are many provisions under Title 11 that protect creditors from unscrupulous borrowers.

In addition, most cautious lenders require that the owners of a company sign personal guarantees on money borrowed by the company. Most business loans are “secured” or guaranteed by the items purchased with the money borrowed. If the company doesn’t pay, the lender reclaims the collateral.

The most recent incarnation of the bankruptcy code (“BAPCPA”) was written by the creditor lobby. You can bet your bottom dollar that they wrote many provisions into the Bankruptcy Code that protect their interests. In fact, many legal scholars are complaining that the Bankruptcy Code is now too tough on debtors and favors creditors unnecessarily.

Plus bankruptcy fraud is investigated by the Department of Justice and FBI. When any company files bankruptcy a plethora of very smart individuals inevitably take a close look at the books looking for signs of fraud or any other misdeeds.

]]> By: Mutt http://www.bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable/comment-page-1#comment-545 Mutt Wed, 04 Mar 2009 11:23:41 +0000 http://bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable#comment-545 Two words: Kenneth Lay (former CEO of Enron). The CEO can be prosecuted if he does all this intentionally. But, it will take many more than just the CEO to pull it off. A CEO is not "God" in the company. They have to report to the Board of Directors, who report to the shareholders. Two words: Kenneth Lay (former CEO of Enron).

The CEO can be prosecuted if he does all this intentionally. But, it will take many more than just the CEO to pull it off. A CEO is not “God” in the company. They have to report to the Board of Directors, who report to the shareholders.

]]> By: Hiya http://www.bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable/comment-page-1#comment-544 Hiya Wed, 04 Mar 2009 09:55:51 +0000 http://bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable#comment-544 The airline industry managed to stay mostly afloat after declaring bankruptcy, the auto industry can do the same. The airline industry managed to stay mostly afloat after declaring bankruptcy, the auto industry can do the same.

]]> By: wizjp http://www.bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable/comment-page-1#comment-543 wizjp Tue, 03 Mar 2009 15:33:10 +0000 http://bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable#comment-543 uh...the fact no responsible or intelligent entity would lend money to such an orginization in the first place? uh…the fact no responsible or intelligent entity would lend money to such an orginization in the first place?

]]> By: bobbino11 http://www.bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable/comment-page-1#comment-542 bobbino11 Tue, 03 Mar 2009 07:20:57 +0000 http://bankruptcybliss.com/personal-finance/how-to-hold-companies-under-bankruptcy-protection-accountable#comment-542 Im assuming NOTHING. Im assuming NOTHING.

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