Bankruptcy eform Act of 2005 and Explaining Why Congress Instituted This Act
When an individual or a firm comes to a financial situation where its assets are unable to cover the debt or liabilities and there is no capital or asset that can be liquidated to pay the debt the firm or person becomes insolvent. Formerly there were prison sentences for debtors, but the laws from the medieval periods have been amended. In the United States the person or firm that reaches the stage of bankruptcy can file for an absolute dilation of credit by being declared bankrupt. Legal motions have to be made in the appropriate court of law that deals with the issue. This is available to both the corporate and individual debtors with the first legislation coming to be passed in 1800. Individuals incurring debts from the lenders have put the lenders in a spot by taking recourse…...

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References

Altman, Edward I; Hotchkiss, Edith. (2010) "Corporate Financial Distress and Bankruptcy:

Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt" John Wiley & Sons.

Paik, Yongwook. (2010) "Bankruptcy Reform Act of 2005 and Entrepreneurial Activity"

Marshall School of Business, University of Southern California.

It provided for fast proceedings, encouraged debtors to reschedule their obligations rather than liquidate and helped creditors recover their claims against bankrupt estates. The 1994 Act also created the National ankruptcy Commission, charged with investigating further modifications of the bankruptcy law. Latter laws, however, disregarded many of the Commission's recommendations. In April 2005, President George W. ush signed the ankruptcy Abuse Prevention and Consumer Protection Act of 2005. Many experts consider this the most extensive rework of the U.S. bankruptcy law since 1978. The most important changes introduced in this Act concern individual bankruptcy cases, small business bankruptcies and cross-border insolvency cases (AC Amega, Jackson).
II General Concept

ankruptcy is governed by the ankruptcy Code, which became effective in 1978 (Empowerment Zone 2007). It was amended in 1994 and then in 2005. The 2005 amendments formed the ankruptcy Abuse Prevention and Consumer Protection Act of 2005 or APCPA. This Act ignited…...

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Bibliography

ABC Amega. U.S. Bankruptcy Law - Brief History. Credit-to-Cash Advisor: ABC Amega, Inc., 2006

Bankrate.com. 12 Myths about Bankruptcy. Money Central. MSN Money: Microsoft, 2007

Consumer Education Center. General Concepts. ABI World: American Bankruptcy Institute, 2007

Duhaime, Lloyd. Bankruptcy. Duhaime Lawisis: Duhaime Law, 2007. Retrieved September 29, 2007 at http://www.duhaime.org/LegalResources/Bankruptcy.doc

The same officials that controlled the municipality prior to the filing continue to run it, and the bankruptcy court has no authority to intervene or to deviate from their authority. Note that since the bankruptcy process changes nothing in the locality's political structure. Therefore, the incentives that promoted local spending and caused the bankruptcy to begin with, remain in force.
This explains why municipalities that file for Chapter 9 tend to return to insolvency after only a few years. The city of Mack's Creek, for example, filed for bankruptcy in 1998, then for a second time in 2000, and then it contemplated a third bankruptcy in 2004. The city of Westminster, Texas filed on 2000, and only 4 years later filed again. The city of Prichard, Alabama filed for bankruptcy at the end of 1999, came out of the bankruptcy only in 2007, and now, talks of a new bankruptcy…...

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Bankruptcy Reform Act, Pub L. No 94-260, 90 Stat. 315 § 85(e) (1976).

Robert P. Inman (2001), Dissecting the Urban Crisis, Facts and Counterfacts, 32 NAT'L TAX J. p. 136-

Margaret Weir (1996), Central Cities Loss of Power in State Politics, CITYSCAPE: J. POL'Y DEV. p. 23-

Similarly, establishing payment plans with vendors may help reduce monthly costs and free up extra cash. The benefit of such restructuring is that it would allow the company to avoid the highly invasive Chapter 11 process, where there is a loss of control as creditors and a court get to weigh in on company operations. The downside of debt restructuring is that Interstate would still have to pay its debts in full, and quite likely much more in the long run, as interest accrues.
Another option for Interstate would be to find ways to free up or generate extra cash. The company could sell assets, particularly assets that are not critical to core operations, or lay off some of its workforce. The advantage of this process is that it can improve cash flow without accruing additional debt, and Interstate did pursue these options on a limited basis (Twitty). The downside…...

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Works Cited

"Corporate bankruptcy" Securities & Exchange Commission 2005. 2 April 2007.  http://www.sec.gov/investor/pubs/bankrupt.htm .

Murphy, John Francis. "What are the different types of bankruptcy?" The Bankruptcy Lawyer 2005. 2 April 2007. http://www.thebankruptcylawyer.net/types_of_bankruptcy.htm.

Twitty, David. "Maker of Twinkies and Wonder Bread files for bankruptcy." Sign on San Diego Sept. 22, 2004. 2 April 2007.  http://www.signonsandiego.com/news/business/20interstatebakeries-bankruptcy.html .

ankruptcy of WomenFirst Health Care, Inc.
Women First HealthCare, Inc. entered the American business scene in 1996 and its declared mission was to "to help midlife women make informed choices regarding their health care and to provide pharmaceutical products" and, additionally, to provide specific pharmaceutical products to meet the needs of women over forty years. In this sense, the company developed several products, including hormone treatments, meant to improve the life condition of middle- aged women.

Even if, in the beginning, there seemed to be a highly potential market segment that could have been profitably exploited and even if a brief analysis in 2001 showed a significant rise in the stock quotations, the company filed for bankruptcy in 2004, only to end a period of continuous losses and accumulated debts. Had we not had a look at some documents and had we not analyzed the actual happenings, we might have believed this…...

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Bibliography

1. Item 7. Management's Discussion and Analysis of Financial Condition and Results Of Operations. From the Internet at www.edgaronline.com

2. Available on the Internet at  http://finance.yahoo.com/q/is?s=WFHCQ.PK&annual 

3. FORM 8-K. WOMEN FIRST HEALTHCARE, INC. August 2003

4. The company's website at http://www.womenfirst.com/about.html

Bankruptcy may occur when people or businesses that are financially-distressed may have their debt eliminated in part or altogether. The number of bankruptcy filings for the fiscal year ending March 31, 2003 was ~1.6 million in the United States alone (Levy and LaGana). Common types of bankruptcy include filing Chapter 7, 11, 12, or 13. Chapter 7 is the most common type of bankruptcy and may be used by people or businesses. Chapter 13 bankruptcy is limited to people only. Chapter 11 and Chapter 12 bankruptcy are much less common and will not be discussed in this report.
With a Chapter 7 bankruptcy, a court-appointed trustee will divide the debtor's property into "exempt" and "non-exempt" property (Taylor). The trustee will sell all of the debtor's non-exempt property and use the money to pay off the debtor's unsecured creditors. Secured creditors are protected by their security interest in the debtor's property (called…...

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References

Levy, B.S., and G.M. LaGana. "Repairing Damaged Care." Mich Health Hosp 39.4 (2003): 52-3.

Monroe, S.M. "Bankrupt!" Contemp Longterm Care 22.12 (1999): 56-7.

Taylor, M. "If at First You Don't Succeed... Bankrupt Companies Buy Back Their Own Assets." Mod Healthc 33.51 (2003): 8-9.

bankruptcy?
There are essential two primary purposes for the existence of federal bankruptcy laws. The first purpose is to provide debtors with a legally recognized method for discharging their debt and affording said debtors with an opportunity for a fresh start financially. The second purpose is to provide creditors with protection of their interests in the estate of the bankrupt party. In all bankruptcy, all debts are listed and creditors are categorized as either secured or unsecured. Secured creditors enjoy a better position relative to any assets in the bankrupt estate as they have an enforceable interest in said assets. Bankruptcy, depending on the type utilized by the debtor, can either erase the indebtedness of the debtor or allow the debtor additional time to satisfy his debts without interference from his creditors.

What is a lien. Give an example.

In bankruptcy filings liens, claims against property that are filed in order to…...

Discriminate Analysis and Other Models to Predict Bankruptcy
Type of Data Used

Selection of Keywords

Authenticity and Validity

Methods Used for the Prediction of Bankruptcy

Discriminant analysis

Logit analysis

Neural networks

Distance to Default

There has been a constant increase in the attempts that are made to predict bankruptcy because of the deteriorating consequences that are associated with this phenomenon. These consequences include the following: The negative social and economic consequences for the investors and creditors who are associated with the bankrupted organization. The social and economic consequences that the competitors and government, who are associated with the affected organization, would confront. This research will explore various methods that are used for the prediction of bankruptcy. It will highlight the functioning of these models. In addition to that, this paper will also list down the advantages and disadvantages of all of the discussed models as well.

Using Discriminate Analysis and Other Models to Predict Bankruptcy

Introduction

There has been a constant…...

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References

Back, B., Laitinen, T., Sere, K. & Van Wezel, M. (1996). Choosing bankruptcy predictors using discriminant analysis, logit analysis and genetic algorithms. Turku Centre For Computer Science Technical Report, (40), pp. 1-14.

Cooper, D.R. & Schindler, P.S. (1998). Business research methods. Boston: Irwin/Mcgraw-Hill.

Karamzadeh, M.S. (2013). Application and Comparison of Altman and Ohlson Models to Predict Bankruptcy of Companies. Research Journal Of Applied Sciences, Engineering And Technology, 5 (6), pp. 2007-2011.

Klobucnik, J. & Sievers, S. (2013). Bankruptcy prediction based on stochastic processes: a new model class to predict corporate bankruptcies?. Research Gate Working Paper, pp. 1-32.

Personal Bankruptcy
The context of challenging economic times has resulted in sharp increases in the rates of personal bankruptcies filed in the United States (Athreya, 2004). Personal bankruptcy happens when individuals use credit to obtain assets which they are not able to fully pay for because of growing debts due to interest. Interestingly, households generally tend to increase their holdings of debt relative to income, meaning that as household income increases, so does debt. There is an epidemic of over-consumption in the United States, where needs are not distinguished from wants, and instant gratification is easily provided with a swipe of a credit card. Individuals are resorting to borrowing money to pay debts, which creates a cycle that inevitably spirals out of control if not attended to. However, stating that overconsumption is the cause of personal bankruptcy is over-simplifying the matter, as there are several factors that may be involved in…...

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References

Athreya, K. (2004). Shame as it ever was: stigma and personal bankruptcy. Economic Quarterly, 90(2), 1-19.

Dick, A.A., Lehnert, A. (2010). Personal bankruptcy and credit market competition. The Journal of Finance, 65(2), 655-86.

Dranove, D., Millenson, M.L. (2006). Medical bankruptcy: myth vs. fact. Health Affairs, 25(2), w74-w83.

Evans, D.A., Lown, J.M. (2008). Predictors of chapter 13 completion rates: the role of socioeconomic variables and consumer debt type. Journal of Family and Economic Issues, 29(2), 202-18.

The recent impositions on personal bankruptcies attracted the attention but the legal experts opined that new rules could have extensive effects. In common, in the words of a bankruptcy lawyer Jon Schneider of Goodwin Procter in Boston, "There is probably going to be a raft of filings in September to avoid this new law." (Law could trigger Chapter 11 surge) D.J. Baker of Skadden Arps a New York lawyer, representing supermarket chain Winn-Dixie in its reorganization opined that these changes will make some companies to fail in Chapter 11.
James Spryaregen of Kirkland & Ellis in Chicago forecasts that the new rules will make it more stringent to raise sufficient financing in bankruptcy and he visualized more liquidation. The Companies subject to Chapter 11 will only find one and half a year during which the management alone can entail a plan for managing a reorganized company. Presently the Judges can…...

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References

Adams, Marilyn. Law could trigger Chapter 11 surge. 11 July, 2005. Retrieved at   Accessed on 23 July, 2005http://www.usatoday.com/money/companies/management/2005-07-11-bankruptcy-usat_x.htm .

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Retrieved at Accessed on 23 July, 2005http://pfp.aicpa.org/Bankruptcy+Abuse+Prevention+and+Consumer+Protection+Act+of+2005.htm.

Encyclopedia: Bankruptcy. Retrieved at   on 23 July, 2005http://www.nationmaster.com/encyclopedia/BankruptcyAccessed 

Ginsberg, Jonathan. New Bankruptcy Law Passed on April 20, 2005 - Goes Into Effect on October 17, 2005. Retrieved at Accessed on 23 July, 2005http://www.moneylawyer.com/bankruptcy_georgia/new_legislation/new_legislation.html.

Continental Bankruptcy
How can one tell if a company is about to go under? There are at least two ways to answer that. One answer (which is usually not terribly precise) is the long-range one. The other is the (usually far more precise) short-term one. This paper provides at least both long-term and short-terms analysis of the Continental Airlines bankruptcy in 1990, relying for the former on an analysis of the state of the American airlines industry in 1990 and for the short-term specific economic information relevant to Continental at the time.

The major overall economic element affected the entire American transportation industry in 1990 (this included not simply the airlines industry) was the issue of deregulation. For many years, the transportation system of the United States existed within an economic system of a high degree of regulation. That this should have been so should not surprise us if we look only…...

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Works Cited

Bethune, Gordon. From Worst to Best: Behind the Scenes of Continental's Remarkable Comeback. New York: John Wiley, 1999.

Dempsey, Stephen and Andrew Goetz. Airline Deregulation and Laissez-Faire Mythology. Boston: Greenwood, 1992. http://academic.emporia.edu/smithwil/s98mg476/EJA476u8/Lim/carmen.htm

 http://www.creditworthy.com/topics/zscore.html 

http://www.css.edu/USERS/dswenson/web/Z-SCORE.htm

The other factors are the increased level of expenditure and mismanagement of government revenue.
While Egypt experienced difficulties in servicing of its debts, the European creditors would not allow the country time. In 1875, Ismail shelved payment of interest on loans which forced European creditors, ritain and France, to appoint two people to represent their interests through negotiating new agreements. Egypt continued to service the debts faithfully to an extent that 80% of the country's revenue went to servicing of national debt. The numerous difficulties for Egypt to service the national debt contributed to increased European intervention and subsequent occupation. As European creditors used this as a means of interfering with Egypt's affairs, the Egyptian government was angered, which resulted in more trouble with the European nations and the eventual ritish invasion of Egypt.

In conclusion, Egypt's bankruptcy and occupation is attributed to various factors, especially ritish imperialism in the 19th…...

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Bibliography:

COUNTRY STUDIES, 'From Intervention to Occupation, 1876-82', Country Studies,

[web page] (n.d.)  http://countrystudies.us/egypt/25.htm 

GELVIN, J.L., the Modern Middle East -- a History, (Madison Avenue, New York: Oxford

University Press, Inc., 2011).

Family Personal Bankruptcy
Traditional sociological models of normative conformity suggest that those who most comply with presumed cultural expectations would be least likely to turn to practices that suggest a failure of their standing. Being in the midst of a normative storm, however, changes the very nature of the environment and even the conditions of those who are living through the commotion. Theoretical models, including social systems theories, can be particularly susceptible to these issues since they are based on the idea that the parts and interactions between those parts are vital for understanding what is happening and what might happen. What this means for people and their finances is not yet clear though they are often tied to business expectations in general (Granovetter, 2005: 34).

evertheless, it can still be safely assumed that if the particularly players (be they individuals, families acting as one, businesses, corporations or even nation-states) were effectively…...

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Nevertheless, it can still be safely assumed that if the particularly players (be they individuals, families acting as one, businesses, corporations or even nation-states) were effectively being forced into doing something they did not want to do, all would opt to find a way to undertake a "fresh start" in one way or another (Biza-Khupe, 2008). The methods and means behind the various types of bankruptcy protections, after all, foresee this, and were designed and have evolved (legally and politically) for the exact purposes of trying to determine how such a recovery could best come about. Good people (or entities of a social nature) want to continue to being good, particularly if they feel at all connected to passing that sense of cultural accomplishment on to their offspring.

The dramatic economic thunderstorm has clearly smudged the boundaries of these nebulous distinctions, however. There is no long such apparent direct links any longer between what people seem to be doing and why they are doing what they are doing. It simply could be the case that people (as individuals or inside a corporation) no longer see bankruptcy itself in the same light as they used to, which has brought about a shift in the stigma associated with that action (Efrat, 2006). And which also means they could no longer see it as a desirable option even if they have to turn toward it, or they may simply have begun to disconnect it from any basic form or moral legitimacy at all. The potency of the norms of enforcement as Efrat (2006:482) says are not as strong as they used to be. Or perhaps it could be the case that the norms are changing in several different ways and thus effectively removing the theoretical grounding from across the elements. It might well be the case that it will no longer be as safe as it used to be to claim that personal and business bankruptcy considerations share the same network of support.

Take the case of the American middle class (Boushey and Weller, 2008). Many statistics demonstrate that this sector is being hurt the most by uncontrollable debt and the related disheveling of their financial circumstances. How might such individuals act when given the chance to stay or leave this classification? Might they not want to sink lower, as it were, to the lesser social classes (where public benefits may be available), or might they be just as willing to go the other way and gamble on being able to recover with bigger and better results? Could they become reckless in one way or the other or might they be recovering from the storm by moving to an entirely different set of normative opportunities, some of

3.

Data

The data has been collected from a number od sources. Each year figures on the sale of Chrysler cars is released. The performance of the firm is being assessed using the number of cars sold by the firm each year. This is shown in the first column of table 1 below. The data was taken from a number of different news sources and correlated. The second column, the change in sales has been calculated from the sakes figures, and will provide data which may be used in the assessment.

Three sets of independent variables were collected. The first is the total number of vehicles that were produced in the USD in each of the years, in thousands. The second independent variable is the cost of gasoline. This has been assessed as the cost in cents on a per mile basis, given at current prices. Both the production levels and cost of…...

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References

Bureau of Transport Statistics, (2013), Table 1-15: Annual U.S. Motor Vehicle Production and Factory (Wholesale) Sales, [online] accessed on 25th May 2013http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation_statistics/html/table_01_15.html,

Bureau of Transport Statistics, (2013), Table 3-17: Average Cost of Owning and Operating an Automobile, [online] accessed on 25th May 2013http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation_statistics/html/table_03_17.html

Chrysler, (2013), [online] www.chrysler.com accessed 25th May 2013

Economagic, (2013), Unemployment Rate: SA, [online]   accessed 25th May 2013http://www.economagic.com/em-cgi/data.exe/blsln/LNS14000000 

" When a person files for bankruptcy, a person's trust, conscience, moral responsibility and accountability are all jeopardized.
Trust

Trust has always been an important factor in any credit transaction. With the increase of informal credit sales such as credit cards, trust is crucial between the debtor and the creditor for the liquidity of the transaction. In earlier days, economic trust was interpreted as strong as other forms of human interaction such as neighborliness, friendship and marriage.

Economic trust was not thought of as a purely pragmatic relationship but was applied to a much broader spectrum of necessary social interaction. But, with declining morals in the country, it has become more acceptable to break this trust by filing bankruptcy when personal debts are too large.

Robert South writes, "without (trust) there can be no correspondence maintained either between societies or particular persons."

The basis of trust in promises and all other forms of human obligation…...

Right now, it is impossible to discuss the financial markets without looking at what happened with GameStop stock, so we are going to focus our example essay outline on this event.  To understand how a bunch of small investors organizing on social media were able to disrupt hedge fund managers and traditional ways that they profit off of failing companies, it is important to understand the concept of shorting stocks. 

I. Introduction

A. Stock shorting

B. Why businesses fail from stock shorting

C. Why GameStop was vulnerable

D. The impact of purchasing GameStop....

Understanding Business Failure: A Comprehensive Analysis of Causes, Consequences, and Mitigation Strategies

Introduction

Business failure is an unfortunate reality that affects a significant number of enterprises worldwide. Understanding the causes, consequences, and potential mitigation strategies for business failure is crucial for entrepreneurs, managers, and policymakers alike. This thesis aims to provide a comprehensive analysis of business failure, exploring the factors that contribute to its occurrence, the impact it has on individuals, organizations, and the economy, and the measures that can be taken to mitigate its effects.

Section 1: Causes of Business Failure

1. Economic Factors: Economic downturns, recessions, and changes in market conditions can....

Blackfish: A Harrowing Challenge to Ethical Principles in Animal Entertainment

Gabriela Cowperthwaite's riveting documentary, Blackfish (2013), has ignited a global outcry against the exploitation of animals in the entertainment industry, particularly the plight of captive orcas at SeaWorld. Through a compelling blend of firsthand accounts, historical footage, and expert testimony, Blackfish confronts the ethical principles surrounding animal rights and exposes the moral bankruptcy of keeping sentient beings in captivity for profit and entertainment.

1. The Autonomy and Well-being of Animals

At the heart of Blackfish's ethical argument is the concept of animal autonomy. Orcas, like humans, are highly intelligent and social creatures with....

SEC Case Study: The Fall of FTX

Introduction

The Securities and Exchange Commission (SEC) is the primary regulator of the securities markets in the United States. It enforces federal securities laws and regulates various financial institutions, including brokerage firms, investment advisors, and public companies. One recent SEC case that has garnered significant attention is the collapse of FTX, a cryptocurrency exchange founded by Sam Bankman-Fried.

Case Overview

FTX was founded in 2019 and quickly became one of the largest cryptocurrency exchanges in the world. However, in November 2022, FTX filed for bankruptcy after a series of disclosures revealed that it had commingled customer funds....