bankruptcy news stories on Newser

Up to 1M Americans Too Poor to Go Bankrupt

Dustin Lushing — Sat, 12 May 2012 11:31:02 CDT

Between 200,000 and 1 million Americans this year are so down-and-out they don't even have enough money to file for bankruptcy, a new study finds. The average cost of filing for Chapter 7 bankruptcy protection is about $1,500—$300 just for the paperwork fees in court and the...

A First for US Public Pension Fund: Bankruptcy

Kate Schwartz — Thu, 03 May 2012 10:00:19 CDT

It's a high-profile milestone out of a not-so-high-profile place. The Northern Mariana Islands' public pension fund sought bankruptcy protection last month, a notable move in that it's the first such US fund to do so. The Wall Street Journal paints a picture of a complicated road to collapse for the...

Octomom Files for Bankruptcy

Rob Quinn — Tue, 01 May 2012 01:31:00 CDT

Child-rich but cash-poor California mother Nadya Suleman filed for bankruptcy yesterday. The mother of 14, including her famous 3-year-old octuplets, has some $50,000 in assets, but owes up to $1 million to her father, a Christian school, the city of La Habra's water department, and the previous owner of...

Pink Slime Maker Files Chapter 11

Polly Davis Doig — Mon, 02 Apr 2012 12:09:20 CDT

Apparently it's going to take more than a couple of governors chowing on a burger to save pink slime: AFA Foods, a leading manufacturer of "boneless lean beef trimmings," today filed for Chapter 11 bankruptcy protection, citing a steep drop-off in demand for its products. AFA will this week suspend...

Your Fuller Brush Man Is Broke

John Johnson — Wed, 22 Feb 2012 14:40:05 CST

Another iconic American business is going belly up: Say goodbye to the Fuller Brush man. The Kansas company, whose door-to-door salesmen hawking cleaning products became a pop culture staple decades ago, has filed for bankruptcy, reports the Wall Street Journal . Alfred C. Fuller founded the firm in 1906 with $375,...

Detroit Bust Would've Been Better Than Bailout

Mark Russell — Tue, 14 Feb 2012 09:02:35 CST

Three years ago, Mitt Romney wrote that President Obama should " Let Detroit Go Bankrupt ," instead of bailing out the struggling auto industry, in a famous New York Times column. And today? Even with the American auto industry on the rebound, Michigan's GOP primary looming on Feb. 28, and Rick Santorum...

American Airlines to Cut 13K Jobs

Wed, 01 Feb 2012 14:30:03 CST

The parent of American Airlines wants to eliminate about 13,000 jobs—15% of its workforce—as the third-biggest US airline remakes itself under bankruptcy protection. The company aims to cut labor costs by 20%, and will soon begin negotiations with its three major unions. AMR Corp. CEO Thomas W....

MF Global's Missing Cash May Be Gone Forever

Matt Cantor — Mon, 30 Jan 2012 13:09:19 CST

As officials search for the remainder of missing MF Global cash—which one insider puts at more than $1 billion—some are starting to fear the worst. In the words of one source to the Wall Street Journal : A "significant amount" of the money could have "vaporized," impossible to track...

Kodak Files for Bankruptcy

Rob Quinn — Thu, 19 Jan 2012 06:30:00 CST

The once-mighty Eastman Kodak company has filed for bankruptcy. The 131-year-old firm, unable to reinvent itself quickly enough for the digital age, filed for Chapter 11 bankruptcy protection this morning after running out of cash to fund its turnaround, the Wall Street Journal reports. The company says it has secured...