Title: What 2010 Has In Store In Terms Of Bankruptcy

There were many companies in the year 2009 who filed for Bankruptcy which were never thought to be even close to it. Two of the famous exemplar is General Motors and Chrysler. Both of the companies were very quick to decide upon the Bankruptcy filings because the way to reorganization was already determined. There are definitely chances of seeing more such cases this new year as well where pre packaged Bankruptcy is filed by large businesses. This is not the first time such a type of Bankruptcy is used, it has always been there. However now it has turned into an art form. The basic idea here is to determine on which side the creditors are by risking a Bankruptcy. The creditors who do not agree with the offer are later taken out of the company while the ones who had supported recover on the other side of the same company with some interest in it for them. Mostly it is equity interest.

Another possible tread is the ongoing tend of huge Bankruptcy filings. This can be filing chapter 7 Bankruptcy or Chapter 13. The names might not be what you have heard of. For example, the commercial real estate companies. Anybody related to them like brokers or mall owners everyone will be affected by it. What more is going to continue is the hidden depression. You might hear people say that they did not get affected. But what you should see are the number of banks that have failed. More banks failed this year than combined in the 2007 and 2008. The most effective job is done by the government who has been able to hide all this very well. There is no clear account to unemployment. On paper it is only 10% while in actual is it closer to 20%. The rate on paper does not include any person working part time or who have not worked in a year.

However, there is some hope in the coming year. The country has come to a level of stability. The effects of which will not be experienced by common until end of 2010 or starting of 2011.

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