Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (6608)	8/3/2001 11:48:35 PM
From: Ilaine	Read Replies (1) \| Respond to of 74559

Hi Jay- re: personal bankruptcy for Joe Six Pack - once a person has been discharged, they can't file for bankruptcy again under Chapter 7 for six years. So some creditors are willing to loan to them again immediately afterwards because they can't do it again for a while. Bankruptcy is easy, cheap, and relatively painless. That's why Congress has been working on revising the bankruptcy laws. My guess is that this current downturn isn't the most politically expedient time to do it. Better to do things like that during a boom. Corporations don't do Chapter 7, it's Chapter 11, reorganization. Most bankrupt corporations don't bother unless they can take advantage of the laws which allow them to reorganize. As a bankruptcy maven once told me, why drag the corpse around in the middle of the public square just to prove it's a corpse? I do a little bit of bankruptcy, but the guy whose room is next to mine does nothing but. He's one of the local gurus - a real big shot.

To: TobagoJack who wrote (6608)	8/4/2001 6:53:42 AM
From: Maurice Winn	Respond to of 74559

Jay, in NZ we had [I suppose still have] what was called a Section 218 notice which was a warning that the company would be wound up at the request of the creditor to a court. Sometimes, big companies would huff and puff about how they were too big to be pushed around by little creditors. Judges and the law soon pushed and big companies very quickly paid their bill when they realized that laws apply to all. Because it's usually important to maintain a good selling relationship, Section 218 notices were used exiguously [a favourite word meaning sparingly]. I imagine you had quite fun getting that fast action from the debtor oil company. There is something to be said for being an ex-British colony. People moan about having been colonized, but I think most if not all of Africa would be better off if they were still colonies of Britain and France. Mqurice