Circumstances can change in an instant, even for a company with strong backing and a good product. Fisker Automotive is a prime example. The company filed last week for bankruptcy after receiving a commitment for a $529 million loan from the United States Department of Energy. The DOE suspended funding in 2011 after Fisker failed to satisfy a number of milestones in the sale of their luxury vehicle, Karma. At the point when funds were suspended, Fisker had already received a disbursement of $192 million. The DOE managed to recover only $28 million of the loan from Fisker. It sold the remainder to Hybrid Technology, LLC for $25 million.
A battle is raging in U.S. Bankruptcy court to attempt to dismiss an involuntary bankruptcy claim that is being filed against CSN Houston by NBC Universal on behalf of NBC/Comcast. This may not seem like a significant move to most of the country, but rest assured that people in the Houston area are paying very close attention to these proceedings and awaiting a ruling from Judge Marvin Isgur.
Approximately 1.1 million individuals filed bankruptcy petitions in 2012. The primary cause for filing revolved around consumer debt. Median average monthly income among filers nationwide was $2,743 and median average monthly expenses was $2,769. Most of those filings were made under Chapter 7. For many of those who filed in 2012, it was not the first time they did so.
ECOtality, a green energy company backed in part by taxpayer funds, filed for Chapter 11 bankruptcy protection on September 16, 2013. The filing follows a tumultuous period for the company that, in the weeks leading up to the filing, saw mass layoffs and a halt on fulfilling orders for their charging stations for electric vehicles. They had been awarded $115 million by the United States Department of Energy (DOE) in stumulus funds to advance their work and produce the charging stations. Those payments were suspended in August after disbursements totaling over $96 million had already been paid.
Not all bankruptcies occur amicably or voluntarily. The Avantair bankruptcy is a glowing example. In this case Avantair had to file what is referred to as an “involuntary Chapter 7 petition.” Involuntary bankruptcies are generally filed by creditors against businesses as a means of protecting their interests. If a company has assets it can use to pay off debt but is not paying its debts, this is a way that creditors can secure payment.
There is no denying that America, and many other parts of the world, are in the midst of a credit crisis. This crisis has found many Americans facing out-of-control debt and searching for a viable solution. For some, the only solution is filing bankruptcy, but the idea of bankruptcy scares people. It evokes images of lifestyle changes they believe to be too much to bear, so they start looking for alternatives.
In January 2012, one of America’s oldest and most-recognized corporations, Eastman Kodak, officially filed for Chapter 11 bankruptcy. As pioneers in film manufacturing, they had spent years struggling to keep up with the changing times. In a predominant digital photography-centered world, the difficulty in doing that was increasing by the day. The Kodak Corporation was founded by George Eastman in 1880 and spent over a century leading the industry in cutting-edge technology and innovative products.
Earl Simmons, known better to the world as rapper DMX filed for Chapter 11 Bankruptcy in Manhattan on July 29, 2013. He has upwards to $10 million in debt and is claiming to have less than $50,000 in assets to cover them. DMX is known for such hits as “Party Up (Up in Here)” and “Ruff Ryders Anthem” among others.
Among the debts that he has amassed over the last few years, DMX currently owes $1.24 Million in back child support payments alone. Having that much child support debt is keeping him from getting a passport which is subsequently having an adverse effect on his career. No passport means no international tour dates.
It really is no secret by now that the city of Detroit, Michigan has filed for bankruptcy. Not long ago, Detroit was the hub of America’s automobile industry. It has been the long-time home of the Big Three automakers: Ford, Chrysler and General Motors. There was a time in our nation’s history where you could barely spot a car on the road by one of these manufacturers that wasn’t built in Detroit. Even some foreign models were contracted out and assembled in Detroit – there was a time when it amounted to a status symbol within the industry.
According to a 1992 court case filed under the 10th Circuit Court of Appeals, Dewsnup v. Timm, people filing for a Chapter 7 bankruptcy could not strip a second mortgage on their home. This meant that if someone in debt had two mortgages out on their home they were responsible for paying both mortgages off, and in some cases, would even lose their home. Since 1992, when Dewsnup v. Timm was decided, this has been the standard for all homeowners while filing for Chapter 7 bankruptcy. However, on May 11, 2012, the Eleventh Circuit Court of Appeals in Florida turned that notion on its heels. Continue reading