Tag Archives: Bankruptcy

Can I File for Bankruptcy If I am Behind on My Taxes?

If you’re behind on taxes, you’re not alone. Millions of Americans incur tax debts each year. Fortunately, bankruptcy can discharge certain non-priority income tax debts. Many people turn to bankruptcy if they are swamped with tax debt, as it can get rid of eligible back tax debts. In other cases, it may allow you to pay back tax debts over a long period of time. But, if you haven’t filed your taxes, you can’t file for bankruptcy. Copies of your previous tax returns are required during the bankruptcy filing process. Just keep in mind that filing taxes isn’t the same as paying them. Not filing taxes is the only setback when filing for bankruptcy. Can Filing for Bankruptcy Clear My Tax Debts? Depending on the circumstances, filing for bankruptcy can potentially clear your tax debts. The bankruptcy court can look at several factors and criteria before deciding if you can…
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American Bankruptcy Institute Hosts Corporate Restructuring Competition

If you have been reading our blog long enough, then you know that bankruptcy is not about counting your losses but protecting your assets and redistributing your earnings to do the most good for your financial future. You might also be aware that business bankruptcies –and what makes us feel so good about them—are also known as financial restructuring. Restructuring is what makes bankruptcies so helpful. But did you know that the miracle wrought by restructuring is a big enough deal in the corporate world that some of the most prestigious business schools in America have an annual restructuring competition? The American Bankruptcy Institute (ABI) recently hosted its 15th Annual Corporate Restructuring Competition. Each year, the event allows business school students to participate in a crisis management exercise. Seven prestigious business schools participated this year. Schools that participated this year include the University of Chicago Booth School of Business, Columbia…
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Bankruptcy Success Stories: American Airlines

We have written extensively about how struggling businesses can benefit by filing for Chapter 11 bankruptcy. Over the years, numerous companies survived financial disasters by seeking Chapter 11 protections. Some of these companies are household names, such as American Airlines. American Airlines is the largest commercial airliner in the United States. Despite its history of success, the company experienced severe financial problems less than a decade ago. American Airlines was beset by numerous financial setbacks before its parent company, the AMR Corporation, filed for Chapter 11 bankruptcy in 2011. For instance, the company reported steep losses and major problems negotiating labor contracts with pilot unions. The company was also facing excessive debts and rising fuel prices. Many of these problems had persisted for years before the AMR Corporation sought protections under Chapter 11. In fact, the company narrowly avoided filing for bankruptcy in 2003. In 2011, facing a serious crisis,…
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