Usually, you need a lot of credit at the beginning of a bankruptcy.
The failure of the Fort Lauderdale, Fla. company helped push French engineering giant Alstom S.A. to the edge of bankruptcy and forced credit card processors to refund customers who had paid for trips that never happened.
The potential fallout is huge: the possible disintegration of Saul Steinberg's Reliance Group, the potential bankruptcy of several California insurers, numerous credit downgrades and the likelihood of big charges to earnings in several widely held insurance companies.
Far more worryingly, this sorting of the wheat from the chaff occurred in the credit defaults swap market, which showed the perceived risk of bankruptcy ballooning for Citi and rising sharply for BoA, while JPMorgan remained more secure.
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Expect Congress to move more quickly on the consumer side of financial reform, including passing a credit card owner's "bill of rights" and allowing bankruptcy judges to alter mortgage terms.
The ever-growing insolvency figures, the change of credit culture and the much shorter bankruptcy period lead to one logical conclusion.
The terms on its secured MasterCard are even more favorable: it considers applicants regardless of income, credit score and history, and bankruptcy status.
You might not have paid much attention in April when President Bush signed a rewrite of personal bankruptcy laws long sought by credit card companies.
Credit-default swaps, a type of insurance against bankruptcy, suggest that the borrowing costs of big emerging-markets firms have spiked along with those of their home countries' governments.
Today Lehman creditors including Goldman Sachs, Morgan Stanley and Credit Suisse offered a bankruptcy court their own version of a liquidation plan for the defunct investment bank.
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Business leaders say some companies verge on bankruptcy because they cannot extend lines of credit with foreign suppliers.
Critics of the legislation contend that it was a boon to the consumer credit industry and that it did not address the root causes of bankruptcy.
Lawyers defending both Credit Suisse and two of the ships' brokers have asked the bankruptcy judge to toss out the suit--or at least force Freedman to shorten it.
She happened to mention that some attorneys accept payment of retainers by credit card to represent the client in a bankruptcy which will discharge that very credit card debt.
Unlike most other types of consumer credit, student debt is extremely difficult to discharge in bankruptcy.
Business leaders say some companies are on verging on bankruptcy because they are unable to extend lines of credit with foreign suppliers.
The subprime meltdown, which began about this time last year with the bankruptcy of New Century Financial, has spread throughout the credit markets and has dragged down banks and bond insurers along with it.
Countries are judged in ten categories that span the life of an enterprise, from its launching, to coping with licenses, obtaining credit, paying taxes, enforcing contracts and dealing with bankruptcy or dissolution of the entity.
It showed the bankruptcy of the Bush Way, and worsened the housing and credit bubble that precipitated the ensuing financial crisis from which we are only now recovering.
In a research note to clients Monday, Credit Suisse First Boston noted that Delphi's bankruptcy, unlike past filings of most suppliers, wasn't spurred by a cyclical cash crunch that prevented the company from investing in new product launches.
In fact, in data gathered by the Consumer Bankruptcy Project, two thirds of the seniors going bankrupt specifically cited credit card interest and fees as the reason for their filing.
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This will not be helpful to US banks which may have insured the European banks through the use of credit default swaps if these insurance contracts have to be unwound upon a Greek bankruptcy.
The potential for a xenophobic party exists in every European state whether a country has a triple A credit rating, as the Netherlands does, or a country is on the brink of bankruptcy, as Greece is.
When we talked a while back, just in the last debate, we talked about the bankruptcy bill, which had been pushed by the banks and the financial institutions, that said, basically, it will be harder for folks who have been lured into these teaser rates and then see their credit cards go up to 30 percent, that they would have a tougher time getting out of bankruptcy.
Since 2005, even private, unsubsidized student loans -- the fastest-growing, highest-cost type of student loan, tantamount to putting college on your credit card -- have been immune to bankruptcy claims, as well.
This case was a class action on behalf of borrowers who discharged their debts in bankruptcy but were still shown to be in default on their credit reports.
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