The North Carolina Bankruptcy Information Blog

Blockbuster Video, the ubiquitous blue-and-yellow beacon of home video rental, is rumored to be finally pushing play on a long-rumored bankruptcy.

It has been reported by several industry sources and the LA Times that Blockbuster CEO Jim Keyes has been paying visits to Hollywood honchos with several golf carts full of restructuring consultants and senior secured-debt holders to discuss the status of his business and its more-than-likely pre-assembled bankruptcy. Blockbuster relies heavily on studio partnerships to provide new releases of big-budget movies. Access to these films is what has been keeping Blockbuster relevant, despite the rise of online rental companies like NetFlix, a model Blockbuster has been trying to emulate.…

Sometimes, corporate bankruptcies can have a lasting, devastating impact on people. However, it’s not always because of a loss of stock dividends, employment benefits or monthly paychecks. Sometimes the pain is literal.

For many, the General Motors and Chrysler bankruptcies mean that a number of defective automobile lawsuits will not see the light of day or at the very least, will be delayed for years while those injured continue to live in pain and with life-altering disabilities. To no surprise, the resulting medical bills that pile up with little hope for company compensation often result in financial agony as well.

A couple in Connecticut, the Polios, filed a suit against Chrysler for a defective roof in a Grand Cherokee, which they say led to Jeanne Polio’s paralysis after an accident.…

The bankruptcies of General Motors and Chrysler have created a buzz in bankruptcy law circles because of their rapid movement through the court system. The sale of GM was formally approved on July 5, marking the nation’s birthday by giving court approval to one of its favorite corporate sons.

Both the GM and Chrysler bankruptcies sped through the courts in under 45 days with the help of sell-off strategies largely orchestrated by the US government. Countless legal professionals did not think this sort of time-frame was possible, especially with companies as complex as two of the world’s largest car manufacturers. As a result, law students nationwide will have a new topic of study come next semester.…

Well, Chrysler’s bankruptcy fire sale is done. It was finalized on June 10th. Now, three main players hold the bulk of Chrysler’s “good” assets: the Italian car-maker Fiat, the United Auto Workers’ retiree healthcare trust, and the federal government. And, the majority of Chrysler’s secured creditors got 29 cents on the dollar for their debts. You’ll recall that this deal was not without controversy.

The bankruptcy judge who oversaw the case approved the deal, finding it was necessary for Chrysler to avoid liquidation. But the heads of two Indiana pension funds – the Indiana State Police Pension Fund and the Indiana Teachers’ Retirement Fund – and Indiana’s Major Moves Construction Fund appealed the judge’s order to the Second Circuit U.S.…

Some 330,477 people filed bankruptcy between January and March of this year. Do the math. That’s an average of more than 110,000 filings per month, 27,500 per month, and just shy of 1,000 per day. These numbers are up ten percent over last quarter, and 35 percent from a year ago. Indeed, more than 1.2 million people filed bankruptcy between March 2008 and March 2009. The spikes in filing rates are the highest since the fourth quarter of 2005, when record numbers of Americans rushed to file bankruptcy before Congress enacted tougher bankruptcy laws. California saw the worst of it this past quarter, weighing in with a total of almost 43,000 filings.…

The Chrysler bankruptcy saga continues. As you’ve undoubtedly heard by now, in a move to save itself from certain collapse after bankruptcy, Chrysler crafted a deal to sell a big chunk of its assets to the Italian car-maker Fiat, while at the same time shedding most of its debt. The bankruptcy judge handling the case approved the sale last week, finding the deal was necessary to avoid liquidation. Chrysler said if it was forced to liquidate, it would have to eliminate some 38,500 jobs. The deal was set to close on Monday of this week.

But the heads of two Indiana pension funds – the Indiana State Police Pension Fund and the Indiana Teachers’ Retirement Fund – and Indiana’s Major Moves Construction Fund appealed the judge’s order to the Second Circuit U.S.…

As a result of General Motors and Chrysler filing bankruptcy, thousands of dealerships across the country will be shutting the garage doors and deflating their obnoxious balloon animals and banners. But first, many of them will be liquidating cars at prices that, even for a car dealer, can be considered “Out of this World!”

So if you are on your way out of bankruptcy and the time has come to for a new ride, will you be able to get a car from a dealer? Of course. Let’s discuss it.

Keep in mind that dealers are now in the business of financing cars, not selling them.…

So bankruptcy filing rates for individuals and businesses are up – way up. They’re expected to hit record levels this year. Indeed, with the recent bankruptcies of GM and Chrysler, we’ve seen some of the biggest filings in U.S. history during this recession. But an even more historic event may be on the horizon: the bankruptcy of the federal government itself.

Well before the auto giants filed bankruptcy, the federal government threw billions and billions in “bailout” money at GM and Chrysler, along with AIG, Citigroup, and other flailing banking industry giants. Then, of course, there’s the crash of the housing market, which has been also very costly to the federal government.…

A number of reports have surfaced in recent weeks offering predictions of a return to growth in the economy by the end of this year. No one disputes the value of positive thinking, especially in troubled times such as these. But positive predictions made prematurely, or based upon an incomplete set of facts, can create false hopes and unrealistic expectations, which can actually be counterproductive. Unfortunately, the recent predictions of an impending turn-around in the economy appear to be of this sort.

Just look at the unemployment rate. It has been steadily on the rise for months now. Last month alone, some 539,000 jobs disappeared.…