Comments on: Chapter 7:bankruptcy Liquidation

By: CenseSay

CenseSay — Sat, 15 Aug 2009 23:17:13 +0000

that could just beï»¿ australian law, or an australian loop hole (most likely) that the company crawled through and can legally demand the money from its shareholders

By: brokeinvestor

brokeinvestor — Sat, 15 Aug 2009 22:31:52 +0000

Its still in the woodworks so not yet. There hasï»¿ been no talk of a government bailout for these Average Joe’s who owe tens of millions.

By: wmacorlando

wmacorlando — Sat, 15 Aug 2009 21:34:21 +0000

Have they actually been forcedï»¿ to pay?

By: brokeinvestor

brokeinvestor — Sat, 15 Aug 2009 21:12:17 +0000

There are stocks that you in fact have to pay off the debt in the company. Google “Brisconnections” (a company in Australia). The people who bought the stock recently owe $2 per share. The stock is at $0.01 and no buyers. So heaps of un-educated investors have beenï»¿ trapped into $mils of debt. The investors are getting taken to court cause they cant pay up.

By: khanacademy

khanacademy — Sat, 15 Aug 2009 20:35:48 +0000

No, the stock/equity can only go to zero.ï»¿ It cannot be negative. If I own a share of GM, the worse thing that can happen is that it becomes worthless. I wouldn’t ever “owe” money to GM’s unsecured creditors.

By: daveeb0y

daveeb0y — Sat, 15 Aug 2009 20:30:05 +0000

Even when your Assets are greater than your Liabilities, you can still go bankrupt if you have 0 cash and are unableï»¿ to pay the interest payments you owe on the debt. This is why there is the popular phrase “Cash is King”.

By: wwwdotLPdotorg

wwwdotLPdotorg — Sat, 15 Aug 2009 19:45:49 +0000

Thank you,ï»¿ I might have missed that.

By: clovermintblue

clovermintblue — Sat, 15 Aug 2009 19:02:26 +0000

he is talking specificallyï»¿ about chapter 7, bankruptcy liquidation. Where, the owners just decide that they do not want to run the company anymore, for whatever reason, that is when they file for Chap 7, bankruptcy liquidation.See this video once again, you’ll get your answer.

By: wwwdotLPdotorg

wwwdotLPdotorg — Sat, 15 Aug 2009 18:10:43 +0000

If the company had 7 million in assets and 6 million in liabilities thenï»¿ why would it file for bankruptcy?

By: creditliberation

creditliberation — Sat, 15 Aug 2009 17:19:47 +0000

if you file for bankruptcy it’s not the end..I am in process of recovering or myï»¿ husband is..please visit my blog