Personal Bankruptcies 2020 Based On Demographic Profile
9. Well-educated people file 20% of American bankruptcies.
Many misconceptions are flying around when it comes to bankruptcy. But the simple truth is it can happen to anybody.
The American Bankruptcy Institute Statistics clearly show that, while 20% of filers have a college degree, 29% have some form of college education, and 36% are high school graduates. As you might recall, even President Trump has occasionally filed for corporate bankruptcy over the years. While the Trump bankruptcy cases were not individual claims, he has filed a chapter 11 bankruptcy claim as much as six times.
10. Personal bankruptcy rates for males are higher than for females .
According to findings by Dan Mangan at CNBC, men are more likely to file for bankruptcy than women. The gap between the two is very small, but the reasons are very different.
The majority of men who file for bankruptcy do so after losing high-paying jobs. In contrast, 48% of women who file for bankruptcy are forced to do so due to a divorce, as the divorce statistics show.
11. 60% of people who file for bankruptcy earn less than $30,000 a year.
Data on American bankruptcies show that many people filing for bankruptcy are on low household incomes. The figures also show that only 9.2% of people who earn $60,000 per year go bankrupt.
12. According to personal bankruptcy statistics, 64% of people who file for bankruptcy are married.
How Is Donald Trump Able To File For Bankruptcy So Many Times
Prior to the 2016 presidential election, when people discussed then-candidate Donald Trump, they often focused on his personal finances and how he had run his businesses. One of the common refrains had to do with his bankruptcies. According to pundits and critics, Trump had been unsuccessful in business, having to file bankruptcy several times in order to get by. Some people may have seen those stories and read the reports only to wonder how a person can declare bankruptcy so many times. For someone with the wealth of Donald Trump, how is it possible to keep declaring bankruptcy?
Donald Trump and personal bankrtupcyTo understand Donald Trump and bankruptcy, one must first understand the distinction between personal finances and business finances. Businesses are separate entities according to the law. In particular, corporations have their own legal personhood. They are specifically created so that people can avoid personal financial liability if things happen to go wrong. With this in mind, Donald Trump has actually never declared personal bankruptcy. In each instance, his bankruptcy has been a result of a business failure rather than a personal failure.
There have been many other business bankruptcies. Most of those have involved casinos. While Trump has tried hard in the casino business, he has had a number of failures there. On top of that, his Trump Plaza Hotel had to declare bankruptcy in order to seek ample protections.
Fact Checking: Donald Trump Has Filed Bankruptcy Six Times
The Differences Between Bankruptcies: Chapters 7, 11, and 13
Recently, I met a prospective client with over $30,000.00 in medical debt. She lives with her one minor child and her annual household income around $40,000.00. She can pay her basic bills, but the massive medical debt is a different story. The collection phone calls are picking up and her stress level is beginning to affect her health. This same woman filed for Chapter 7 bankruptcy relief 6 years ago following a job loss, meaning that she would not be eligible for another Chapter 7 bankruptcy filing for 2 more years. She looks at me and says If our President can file bankruptcy whenever he gets into a pinch, why do I have to suffer for 2 more years? She recalled a news story saying that President Trump had filed bankruptcy at least four times prior to becoming our U.S. President.
Fact Checking: Has Donald Trump filed for bankruptcy relief 4 or 6 times?
Lets do some fact checking about how many times Donald Trump has filed for bankruptcy protection and why there is some debate over this number. During the 2016 presidential campaign, Hillary Clinton correctly pointed out that Donald Trump had filed bankruptcy 6 times. Here is a quick breakdown of the six Chapter 11 bankruptcy filings by companies owned by Donald Trump. All six of Donald Trumps bankruptcy filings were prior to him becoming our current U.S. President.
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Were Watching Trumps 7th Bankruptcy Unfold
As a businessman, Donald Trump ran 6 businesses that declared bankruptcy because they couldnt pay their bills. As the president running for a second term, Trump is repeating some of the mistakes he made as a businessman and risking the downfall of yet another venture: his own political operation.
In the 1980s, Trump was a swashbuckling real-estate investor who bet big on the rise of Atlantic City after New Jersey legalized gambling there. He acquired three casinos that by 1991 couldnt pay their debts. The Taj Mahal declared bankruptcy in 1991, the Trump Plaza and the Trump Castle in 1992. Lenders restructured the debt rather than liquidate and Trump put his casino holdings into a new company that went bankrupt in 2004. The company that emerged from that restructuring declared bankruptcy in 2009. Trumps 6th bankruptcy was the Plaza Hotel, which he bought in 1988. It went bankrupt by 1992.
Trumps surprise victory in 2016 paralleled the arrival of the brash upstart in Atlantic City more than 30 years earlier. But in the fourth year of his presidency, the Trump operation is once again reeling. Voters give him poor marks for handling the coronavirus crisis, underscored by an outbreak at the White House that infected Trump himself. Democrat Joe Biden is beating Trump is most swing states and an Election Day blowout is possible. Trump has suggested he wont leave office if he loses, threatening a constitutional crisis and his own political legacy.
Read more:
The Resignation Of Michael Flynn
Lt. Gen. Michael Flynn was tapped by Trump to be his national security adviser in November 2016, just days after the presidential election. He resigned the position after just 24 days on the job, in February of 2017 after The Washington Post reported that he lied to Vice President Mike Pence and other White House officials about his meetings with a Russian ambassador to the United States.
What the Scandal Is About
The meetings Flynn had with the Russian ambassador were portrayed as being potentially illegal, and his alleged cover-up of them concerned the Justice Department, which believed his mischaracterization made him vulnerable to blackmail by the Russians. Flynn was said to have discussed U.S. sanctions on Russia with the ambassador.
What Critics Say
Critics of Trump saw the Flynn controversy as further evidence of the presidential campaigns ties to Russia and its possible collusion with Russia to damage Clinton.
What Trump Says
The Trump White House was more concerned about leaks to the news media that about the actual nature of Flynns conversations with the Russian ambassador. Trump himself reportedly asked Comey to drop his investigation of Flynn, saying, I hope you can see your way clear to letting this go, to letting Flynn go, according to The New York Times.
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Trump Ruffin Tower Llc
- 2019 Revenue: $27,677,448, divided between $4,414,500 in condo sales and $23,262,948 in hotel revenue
- 2018 Revenue: $28,558,298, divided between $6,002,244 in condo sales and $22,556,054 in hotel revenue
- 2019 Asset Value: Over $50,000,000
- Business Type: Hotel and Condominium Complex
Trump Ruffin Tower LLC manages the Trump International Hotel and Tower in Las Vegas. Constructed in 2008, the tower is a combination hotel and condominium development.
It struggled as the Great Recession hit when it opened more than a decade ago, devastating the real estate market. Plans for a second tower were scrapped.
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How Many Times Has Donald Trump Filed Bankruptcy Trumps Businesses That Have Had Filed For Bankruptcy
Donald Trump has portrayed himself as a successful businessman who has amassed a net worth of as much as $10 billion. But he has also led some of his companies into bankruptcy, maneuvers he says were designed to restructure their massive debt.
The most interesting moment of the first republican debates for me personally was the confrontation of presidential candidate Donald Trump and Fox News host Chris Wallace. The latter asked an eccentric billionaire a head-on question: How can we entrust the governance of a country to a person who has bankrupt his business four times in the past 25 years?
I acted within the laws of the United States and pursued the interests of my company, employees, family, said Trump. – The greatest businessmen of the United States do the same. I’ve never been bankrupt!
Donald Trump likes to boast he has never filed bankruptcy and honestly, he has not ever filed bankruptcy personally. He has had numerous Companies though that he has owned and managed so poorly that he has had to file bankruptcy for at least 6 different companies.
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If Trump Companies Can File For Bankruptcy Why Cant I
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In a Nutshell
Bankruptcy isnât something to be ashamed of. It helps businesses and people â including the former leader of the free world â escape from debt and move forward. Former President Donald Trump has repeatedly used bankruptcy to help his businesses and himself get ahead. This article discusses Donald Trumpâs bankruptcies and how they benefited his companies. It also addresses how personal bankruptcy compares to business bankruptcy and why both are necessary for a healthy economy.
Written byAttorney Paige Hooper.
Former President Donald Trump has repeatedly used bankruptcy to help his businesses and himself get ahead. Trump understands that filing for bankruptcy is nothing to be ashamed of. Instead, in some cases, bankruptcy is simply the best decision that a company can make to move forward financially. This logic doesnât only apply to businesses, though. Itâs also true for individuals and couples who file personal bankruptcy to address financial hardships and improve their financial situations.
He Ignores Warnings And Overshoots
Trump was not aware of when to stop in Atlantic City, which led him into serious trouble. He bought the Plaza and Castle, his first two casinos. As Atlantic City casinos grew, profit margins plummeted, massive, and the market became saturated.
Experts warned Trump that he was a considerable over spender when he made his purchases.$820 million of debt. In the late 1980s, the Taj Mahal was built. Trump ignored them and focused on his optimistic assumptions.
After 16 months of the grand opening, the casino was experiencing cash flow problems and declared bankruptcy in 1991. Trump might have been content with his first two casinos and not had to file for bankruptcy in his entire career.
Trumps fear-mongering, slander and other unregulated excesses as president have been his most unregulated. Trump could have used the support of the working-class voters, libertarian businesspeople and others to win by adopting pragmatic policies that make him appear like a problem-solver.
Instead, Trump has relentlessly bullied his critics and blamed immigrants and civil-rights activists for getting in his way. Trump refused to take aggressive measures to stop the coronavirus spread, despite being advised by public-health experts. Instead, he tried to convince the public that everything was fine.
Trumps coalition now seems to be shrinking rather than expanding, as his support among women, seniors, and other key voting blocs crumble.
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Time Limits Apply To Discharges Not Bankruptcy Filings
Bankruptcy law doesnt set a minimum period that you must wait before filing for bankruptcy a second time. However, theres a catch. If you file too soon after wiping out debt in a previous case, you wont be eligible for another debt discharge .
Although there are times that it makes sense to file for bankruptcy even though you wont receive a discharge, these situations are rare . Because a bankruptcy filed too soon will end up being a waste of time and money in most cases, its essential to know how to time your bankruptcy filing.
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Public Service And Private Gain
Trump has dismissed such claims as being without merit and has remained defiant about maintaining ownership of his vast network of real estate and business holdings.
Trump, a wealthy businessman who operates country clubs and resorts, reportedly profited from at least 10 foreign governments during his time as president. The include the Kuwaiti Embassy, which booked the Trump hotel for an event a public-relations firm hired by Saudi Arabia that spent $270,000 on rooms, meals and parking at Trumps hotel in Washington and Turkey, which used the same facility for a government-sponsored event.
Throughout his presidency, Trump also spent a large amount of time at resorts and golf courses owned by his own company meaning that the U.S. government and taxpayers have been paying for presidential trips and security to properties that directly profit Trump himself. One estimate had the cost at over $142 million as of November 2020.
What the Scandal Is About
Critics argue Trumps acceptance of payments from foreign governments violates the Foreign Emoluments Clause, which bans elected officials in the United States from accepting gifts or other valuables from foreign leaders. The Constitution states: No Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.
What Critics Say
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United States V Fred C Trump Donald J Trump & Trump Management Inc
During the 70s, the primary business projects of the Trump Organization involved constructing and renovating hotels, skyscrapers, and apartments in New York City. Actions that were allegedly performed at some of these properties resulted in a civil rights case against Trump, his father, and their business, with the United States Justice Department Civil Rights Division as the prosecution.
This particular lawsuit was filed in federal court instead of state or civil court. This is due to the fact that it involved accusations of violating civil rights law, making it a federal issue. In particular, the plaintiff claimed the Trump Organization violated The Fair Housing Act of 1968, which prohibits landlords and real estate companies from housing unavailable to persons based on factors such as their race, religion, disabilities, and similar criteria.
Winner: Draw
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Trump could simply have ignored the report or dismissed it as old news. But, with cable-news networks featuring it prominently, and the Daily News, one of Trumps home-town papers, running the front-page headlineBIGGEST LOSER, he did what he usually does and counterattacked. This is what he wrote on Twitter:
Trump Hotel & Casino Resorts 2004
Trump didn’t go back to bankruptcy court again until November 2004, when he filed to shed debt at his various Atlantic City casinos and a riverboat in Indiana. It was another quick trip through bankruptcy court the company shed $500 million in debt and emerged from bankruptcy the following May. Trump turned over majority control of the company to his bondholders but remained the largest single shareholder, and he once again kept control of the casinos.
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Admirably Tough Or Downright Slimy Your Call
Donald Trump has ticked off a whole lot of different groups during his outspoken and unconventional run for the presidency. Few small business owners are among them.
Back during the primaries when he was an unlikely challenger to a slew of other more mainstream Republican candidates, Trump managed to attract the support of a whopping 41 percent of small business owners despite the crowded field. Even after a year of gaffes and controversy, more recentpolls suggest small business owners remain among Trumps most stalwart supporters.
But there are some interesting and very vocal exceptions the many small business owners Donald Trump has stiffed in his long career as a real estate tycoon.
Recently several media outlets have dug up a handful of business owners with worrying tales to tell of Trumps bullying, unfairness, and failure to pay. And while their numbers arent huge, there are enough of them to suggest a pattern of behavior that raises questions about whether pre-politics Trump was much of a friend to small business in practice. Here are a few of their stories:
Just What Happened In Atlantic City
Examining the four bankruptcies does highlight an interesting question. While even a single bankruptcy is a life-changing event for both individuals and businesses, Trumps businesses in Atlantic City seem to consider it par for the course, a part of routine business activity. Of course, the affected properties never entered Chapter 7 bankruptcy and liquidation no, they entered Chapter 11 bankruptcy, which focus on a restructuring of the debt and creating a repayment plan to satisfy the creditors. All four bankruptcies were Chapter 11 bankruptcies, allowing the businesses to realign and revamp themselves without losing their ability to conduct business.
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How The Bankruptcy Laws Helped Donald Trump Stay Rich
We have all heard Donald Trump talk, a lot, during this Republican presidential campaign, and, in the debates, many of his challengers, and the debate moderators, criticized him about his four bankruptcies. Yes, 4 bankruptcies! Take a look at this article, that shows a few things that Donald Trump got right about Bankruptcy.
First question: how can he file for bankruptcy and still be so rich? The answer is that he didnt file personal bankruptcy, he filed corporate bankruptcy. This means that when his business was struggling to pay its creditors, he would reorganize his debts in a Chapter 11 case, to essentially cut deals with his creditors to pay them less money, and still allow his company to function. He remained rich because, even though he lost money as the value of his companies went down, he didnt have his own personal assets on the line. He didnt have to sign any personal guarantees on the loans for the companies. So, while his companies had to go into Bankruptcy Court to restructure his debts, he didnt have to do that. Can you or I do that? Not likely, because for banks, small business owners dont have a track record that allows them to have so many other successful businesses, or the name recognition of Donald Trump, so we have to sign personally on our business loans. And, if the typical small business goes south, most likely, that business owner have to consider personal Chapter 7 or Chapter 13 bankruptcy.
Daniel J. Winter
