Smart defaults in bankruptcy

smart defaults in bankruptcy

The Categories We Live By. In the eyes of the law, a corporation is a person, but when a real person, that is, a person of flesh and blood, declares bankruptcy or defaults on his or her debt it is. May 09,  · Bankruptcy issues aside for a moment, deferred-compensation plans have had many attractions, at least until recently. Salespeople who had an . If mortgage is included in Bankruptcy, waiting period defaults to FOUR (4) from the discharge date. UPDATED – Effective 8/16/ Short Sale or Deed in Lieu of Foreclosure not included in a Bankruptcy has a new Waiting Period of FOUR (4) years from date your name is removed from title. smart defaults in bankruptcy

The company says it prevents more than million pounds of used goods from going to landfills annually and employs 22, people. Moran Foods operates the discount grocery chain Save-A-Lot, which has more than 1, stores in 36 states, according to the company's website. It was acquired by Onex Corporation, a Canadian private-equity firm, in The company is facing fierce competition from Whole Foods, Trader Joe's, and others, according to analysts. The company has seen falling sales as brides increasingly opt for casual wedding dresses over traditional gowns.

Indra Holdings is the parent company of the Totes and Isotoner brands, which sell umbrellas, footwear, gloves, and other cold-weather accessories. Like many other specialty apparel and accessory retailers, it's facing growing competition from Amazon, Walmart, Target, and others.

Pier 1 is trying to execute a turnaround with a new CEO, but analysts are skeptical that the home-goods retailer can make a comeback. Moody's in December downgraded its outlook on the company to negative, saying Pier 1's recovery would be "dampened by execution issues" and profit pressure from growing competition and tariffs on Chinese home-furnishings imports.

Business Insider logo The words "Business Insider". Close icon Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification. Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. Login Subscribe Subscribe. A leading-edge research firm focused on digital transformation. World globe An icon of the world globe, indicating different international options. Hayley Peterson. Neiman Marcus Group. Bankruptcy issues aside for a moment, deferred-compensation plans have had many attractions, at least until recently.

Salespeople who had an unexpectedly big earnings year, for example, could defer income until later, when they would probably pay lower taxes. Others might have wanted to lower their income for different reasons, including financial aid eligibility and planning for a forthcoming leave of absence.

The plans are also a form of forced savings. Uncertainty around tax rates has only gotten higher since President Obama has taken office and the size of the stimulus packages has grown. Panic, basically, for those who are in a deferred-compensation plan. Did you expect a different answer? Why is Mr. Even though employees enrolled in deferred-compensation plans are in fact creditors in a bankruptcy, there are many others who, by law, stand ahead of them in line at the corporate asset trough.

One other thing to keep in mind: If you think your plan is safe because the most senior people at the company are still invested, it could be that they are in a different plan with special protections that yours lacks. The most natural response would be to simply take your money out of the plan. But a deferred-compensation plan is not like, say, an Individual Retirement Account, where you can withdraw at will and simply pay taxes and a penalty if need be.

You could also quit your job, if your plan allows you to withdraw your funds upon departure. Departing may not always be possible or practical, though. As Howard S. If those employees had reason to believe that the company was headed for bankruptcy, they might have to turn the money over to creditors.

If your company tries to reorganize in Chapter 11, all may not be lost.

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