For nearly two years, the credit markets have been tightening, making it difficult for consumers and businesses to get credit for purchases and operations.  Several financial institutions declared bankruptcy or were on the brink of failure.  The federal government has used a variety of strategies to prevent a full-scale financial meltdown, including slashing interest rates, [...]

From the Triangle Business Journal, an update to our previous news on regional bank BB&T:�
BB&T Corp. will pay $3.1 billion to buy back preferred stock sold to the federal government, marking the Winston-Salem banking giant’s exit from the Troubled Asset Relief Program (“TARP”).

According to the Detroit News, General Motors reversed the closing of 41 of the 2,100 dealerships originally targeted to be closed as part of GM’s bankruptcy and restructuring. 

For more information, see the article in the New York Times.

The full Supreme Court Tuesday decided not to hear the merits of a challenge to the sale of Chrysler assets to a group comprised of Fiat, the US, Canada and the Chrysler Auto Worker Union Retirement Trust.  The unanimous court, in a two-page-opinion, lifted the temporary stay granted by Justice Ruth Bader Ginsberg on Monday, [...]

BB&T Corporation, based in Winston-Salem, NC with branches throughout the southeast, is one of ten financial institutions that will be allowed to repay Troubled Asset Relief Program (“TARP“) funds, the US Treasury Department announced today.  The Treasury Department would receive $68 billion in repayment proceeds if each eligible institution elects to repay the funds.�
These institutions [...]

This afternoon, the United States Supreme Court issued a stay of the sale to Fiat SpA of the assets of Chrysler LLC, currently attempting to exit bankruptcy proceedings so that it may proceed as a going concern in the global automotive industry.

Now that the Bankruptcy Court has approved the sale of Chrysler’s assets to a consortium of buyers lead by Italian carmaker Fiat, the next major issue is which Dealer Agreements will be assumed and which ones will be rejected. 

General Motors Corporation filed a petition for Chapter 11 bankruptcy protection this morning in the Second District of New York Bankruptcy Court.
According to the bankruptcy filing, as of March 31, 2009, General Motors employed approximately 235,000 employees worldwide.  In addition, General Motors had consolidated global recorded assets of approximately $82.3 billion and liabilities of $172.8 [...]

We have been discussing preferential payments, defenses and avoidance tactics.  But what businesses care about most is getting paid for goods and services provided. This entry will discuss how to collect from a customer who has declared bankruptcy.