Why the Double Standard for Corporate vs. Personal Bankruptcy?

[Sandpiper]

When a corporation goes belly up and declares bankruptcy it's touted as good business and a sound fiscal strategy.

On the other hand, when an individual files for bankruptcy it's a sign of their supposed financial irresponsibility and "spending binges."

The new bankruptcy bill seeks to put the clamps down on personal bankruptcy, while leaving corporate bankruptcy untouched.



Just another example of how big business plays by a different set of rules than the rest of us.

[mmonk]

1. Corporations have more rights

in the new America.

[ultraist]

17. yep! Welcome to the land of "peonage"

What about "asset trusts" for the wealthy? How convenient for them, eh?

[Just Me]

19. Yep. Corporations are in charge. Mussolini's dream world!!! eom

[wellst0nev0ter]

21. Since Corporations Are Considered Living Breathing Creatures

for legal purposes, and have more rights than ordinary Americans, I suggest we call them the "ubermenchem"

[Dave Reynolds]

2. It's their country now,

so we have to play by their rules.

[punpirate]

3. Well, lessee, let's start with...

... who wrote the bill, and who paid for the campaigns of the politicians who are voting for it....

[EVDebs]

4. Globalized multinational corporations outsource jobs and capital

and Congress gives tax breaks to do it.

Also the tax system subsidizes the super rich who make over $3 million annually, includes corporations. See chapters 7 and 8 of "Perfectly Legal" by David Cay Johnston, possibly the most helpful book out there for progressives.

"Red Ink Republicans" is what another poster on DU called them. Righton deadcenter accurate !

[babylonsister]

5. One reason could be that the corporate

credit card companies wrote this reform bill, according to Sen. Durbin today. :wtf: Seems our representatives can't be bothered writing their own bill to support us peons.

[AzDar]

6. How's about we all just declare ourselves "corporations"..........

by incorporating?

[Jacobin]

7. Corporations spend lots of money bribing congresscritters

The Peons need PACs!!!

If we all got together we could at least get in the bidding war to buy a few congresscritters. As it stands now, there are a pitiful few who are there to do the right thing.

[ultraist]

20. The Peons do need PACS, excellent point.

I've said before, the bloggers should set up a PAC and make our money work for us.

Our politicians are being bankrolled by special interest groups (ie big orgs and corps) and if we stay disjointed, as individual donors, we don't have much power.

[PassingFair]

35. Three letters...

DFA

[madmark]

8. I represent small business Chapter 11's and Individuals who file

Chapter 11's and in my view its not about making Chapter 11 a bad code section, but to avoid making Chapter 7 and the rest of the code bad. Thank god Ch ll is still there, even though the transaction costs are higher, sometimes I will it for ppl who are force out of a 7 by new law where the Ch 13 disposable requirements will kill them. That will not be the case with most middle class wage earners and yes they are fucked by the new law. Good job Senate. Good job MBNA Whores.

[ultraist]

18. Are LLCs protected if someone files personal bankruptcy?

Or do they disolve? Do assets have to be in an "assets trust?"

[madmark]

31. Membership interests in LLC's are non-exempt in most if not all states

However, they can be made difficult for a trustee to liquidate or pull value out of particularly when they represent a minority interest. You quest about "assets trust" really didn't make sense.

[gizmo1979]

9. Just another case of big brother

keeping the man down.

[snippy]

10. Corrupt one party control. n/t

[Sandpiper]

11. I wish that were true

Unfortunately, 14 Democratic Senators voted to end further debate on the bankruptcy bill.

[solinvictus]

12. Corporations write the laws...

why would you expect it to be different?

[sandnsea]

13. And change their name and start anew

I just cannot believe how the public is so dumb to what they're letting these corporations get away with. Indoctrination is all I can figure. That and they'll go to hell if they agree with the ungodly Democrats.

[babylonsister]

14. The public? I think the senators who want these

reforms have a lot of self-interest for whatever reason (Biden, anyone?), the public be damned.
I need to get a record of who voted for what. I heard Byrd disapproved an amendment but don't know which or why.

[ultraist]

23. The Peons need to get organized and set up an official PAC

What if the major blogs all got together and held a Grassrooters convention whereby politicians were invited. 100,000 plus people could make some demands. One of which could be, we expect, for our 1 million dollar donation (10 measly bucks per blogger) we want an official voice! Why aren't we connected with the Progressive Democrats group? We are too fractured to have any real power.

We really do need a blogger PAC and coordinate with other sites. This is fucked up. How much money do they get from us? I'd say it's quite a lot. The Trial Attorneys gave the Kerry campaign around 12 million. We might not be able to match that, but still.

[babylonsister]

26. Ultraist, I wish you would float your idea

as its own thread. I'm all ears, and opinions on your idea should be interesting.

[ultraist]

27. It's actually Jacobin's idea, I should have been more clear on that

I agree, we should float it! BEFORE the 06 races roll around. I'm sick of donating and not getting anything for it. I'd love to see more organization. Our DNC donations for Dean weren't even acknowledged but I'm sure the big boys had a special dinner.

[hfojvt]

15. because the GOP wants to save the jobs

It is all about the "little people" being able to have jobs. Do not forget the other jobs programs:
war - jobs for the MIC
lower minimum wage - by law of demand, this means more jobs
no more regulations - safety and health are just costs that get in the way of job creation
and of course, the ultimate:
tax cuts for the wealthy and corporations - best way to create jobs doncha no
:eyes:

[aint_no_life_nowhere]

25. tinkle down economic theory at its finest n/t

[Edgewater_Joe]

16. "I call you 'my base.'"

Also known as THEY'RE EVIL MOTHERF'N BASTARDS, that's why.

[Pepperbelly]

22. now THAT is a good point. Thanks ...

The bastards!

The dirty rat-bastards. :grr:

[banana republican]

24. A potential bankruptcy solution

Please see an attorney state law varies.

1) Create a Family Limited Liability Corp
2) Transfer major assets into the FLLC e.g. your house, pension plans, etc.

3) Creditor sues & wins.

4) Creditor gets a "charging order". (the creditor does *NOT* participate in the management of the FLLC but only receives their share of income & distributions)

5) Sell you home & buy a new one. Do *NOT* make any distributions to anyone.

6) Creditor gets K-1 partnership tax return indicating net income from the sale of your house; *BUT NO CASH DISTRIBUTION HAS BEEN MADE BY THE PARTNERSHIP TO PAY THE INCOME TAX DUE*.


COSTS:

LEGAL FEES FOR SETTING UP THE FLLC SHOULD NOT EXCEED $1000 - $1500 @ $150 PER HOUR

ACCOUNTING FEES FOR TAX RETURN SHOULD NOT EXCEED $500 TO $1000 @ $100 PER HOUR.

[ultraist]

29. Do you mean a FLP or FLLC?

Are you sure? Most people I know who are sheltering assets set up FLPs. But I think they disolve if you file personal bankruptcy, therefore, they don't protect your assets from that. They are inheritance tax loopholes.

Do LLCs shelter assets or do they disolve if you file for personal bankruptcy?

[gulfcoastliberal]

28. I'm recommending this thread, because it's exactly what has me so pissed

about this bullshit. And lo and behold, the DLC supports this legislation!

Check out his disgusting NDOL press release from 2002:

NDC | Press Release | November 14, 2002
New Democrat Leaders Criticize Republicans for Ignominious Defeat of Critical Economic Legislation

For Immediate Release:
Contact: Katharine Lister, Rep. Smith [phone]
Diane Pratt-Heavner, Rep. Davis [phone]
Darin Schroeder, Rep. Kind [phone]

Washington, DC -- The co-chairs of the New Democrat Coalition, Reps. Jim Davis (D-Fla.), Ron Kind (D-Wisc.) and Adam Smith (D-Wash.), criticized the Republican leadership for permitting the extreme elements of their party to defeat critical bankruptcy legislation when it was finally brought to the floor after they held it hostage for five months. The conference report for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2001 would overhaul bankruptcy law to require debtors to take responsibility for their debts and repay them when they are financially able.

The New Democrat Coalition has continuously offered support to the House Leadership on bankruptcy reform. Last year, bankruptcy legislation passed the House with overwhelming bipartisan support including the votes of 50 members of the New Democrat Coalition and several members of the Democratic leadership. The New Democrats have consistently made this legislation a top priority and have delivered a wide base of support for the bill.

http://www.ndol.org/ndol_ci.cfm?kaid=103&subid=110&contentid=251018

:puke:

[babylonsister]

30. I second that! nt

[lostnfound]

32. You're assuming that said corporations don't get bailed out, of course

as happens so often, they are bailed out by tax dollars to prevent them from going bankrupt.

[OneBlueSky]

33. simple . . . the corporations write the laws . . .

if you don't think the bankruptcy bill was written by credit card companies, think again . . .

[TrustingDog]

34. Corps, the super citisens.

what was that legal thingie a while back that made it that way, that a corporation is considered an 'individual'?

[TankLV]

36. Donald Trump - poster boy for corporate "responsibility".

What's he on - his 3rd of 4th bankruptcy now?

And why do the banks and others keep loaning him money to screw them time after time?