Archive for the ‘Corporations’ Category

Filing Bankruptcy to get out of lawsuit for a Corporation?

Posted on April 8th, 2010 by admin  |  3 Comments »

John asked:


I know a lawyer would know more about this, but a friend and I are arguing about this in Business class. Say you own a corporation and you get sued. You lose the case and to avoid paying, I say you can file bankruptcy which will clear your debt and dismiss the case. Then after bankruptcy is filed, the company can be restarted or reinstated. My friend says it probably won’t do anything. What do you guys think?

Will I lose my stock if a company goes through bankruptcy?

Posted on April 7th, 2010 by admin  |  3 Comments »

Answerer asked:


If I have stock in company that goes through bankruptsy, what happens to the stock owned by shareholders?

I’m not talking about an Enron-style collapse, I mean a company that goes through bankruptcy, but survives and hopefully will eventually recover.