Why is it all right for a company to file bankruptcy, close it's doors, and start over?

While never having to look back at any of it’s obligations on hand at the moment; or get a bailout from the government in order to continue business. All of this is business as usual, and the entire charade is not be frowned upon. Yet, an individual who has to file for bankruptcy has so many hoops to jump; let alone doesn’t have the option to change their name, move to another state, and start over with a new Identity…even when it comes to paying state taxes?

Should Corporations have the same hardcore loops to jump through as the average American taxpayer?
Sohale-

I guess my real point is the fact that companies have closed down, filed bankruptcy, and started a new without having to pay state taxes; not to mention leaving people empty handed (customers) while tax payers foot the bill…A good example would be GM. Even if they go under, the American taxpayer will be stuck with billions they will not be able to pay in taxes. However, in order to stay ‘viable’, the American taxpayer is again stuck for billions, while at the same time individuals still profit…

Technorati Tags: american taxpayer, bailout, bankruptcy, billions, charade, corporations, gm, hoops, new identity, state taxes, tax payers, time individuals

Posted September 8th, 2010 in Bankruptcy Q and A. Tagged: american taxpayer, bailout, bankruptcy, billions, charade, corporations, gm, hoops, new identity, state taxes, tax payers, time individuals.

4 comments:

beautyboy:
You can do the same thing. Where have you been? Everyone knows this.
September 8th, 2010 at 1:06 pm
dr_pepper_kid:
One word…………….Attorney’s
September 8th, 2010 at 1:06 pm
who's sane:
It is what the Repubs are about business at any cost to whom ever! Take a look at where is got us!
They should but do not forget the ones behind it are Republlicans and they are about themsleves and not about people. Does not matter they are elected by the people, I guess they think they are leaders for people who want them to make and take charge of their lives. It is no wonder we have this mess. I refuse to ever vote Republican again.
September 8th, 2010 at 1:06 pm
Sohale:
Its not as simply as you think.

Companies filing for bankruptcy, usually see an opportunity in the future; but such a venture comes at a cost, of course. A bankruptcy claim only incurs if the company claiming is large enough to make all the necessary payments, which in most cases add up to billions of dollars.
And it also must draw up a proper, realistic, and viable plan, one which must guarantee the re-introduction of the company into the market.

And in some specials cases, the costs can run into the tens of billions of dollars; so, as you can see, one would only want to accept bankruptcy unless one has absolutely no other option.
September 8th, 2010 at 1:06 pm