Bankruptcy

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    sspo posted Wed, 28 Feb 2007 02:30:00 GMT(2/28/2007)

    Post 869 of 2357
    Joined 6/25/2006

    http://news.yahoo.com/s/ap/20070228/ap_on_re_us/church_abuse_bankruptcy;_ylt=AmSHvO0kbGgIc9Gvhhp_AbtH2ocA

    Wouldn't it be nice if eventually it would happen to the Watchtower

    M roflcopter posted Wed, 28 Feb 2007 03:40:00 GMT(2/28/2007)

    Post 61 of 117
    Joined 2/2/2006

    I fail to see how they can file bankruptcy when they still have tangible assets. On top of that if they do file bankruptcy, I don't see why the proceedings cant continue and the money from the liquidation of the church cant be used to pay restitution to the victims....

    M JeffT posted Wed, 28 Feb 2007 03:47:00 GMT(2/28/2007)

    Post 1684 of 7031
    Joined 6/4/2001

    Bankruptcy doesn't mean you have nothing, it just means that your debts exceed your ability to pay when they come due. Corporations file under Chapter 11 which provides for a plan that makes an equitable distribution of available assets to ALL creditors. When (in this case) the church files for protection it keeps one or two creditors from seizing all the assets, thereby screwing anybody else that is owed money. Chapter 11 can drag on for years, and leave the corporation involved financially stronger down the road. Businesses do it all the time to dodge debt. It has become a regular way for US Airlines to get themselves out of bad situations.

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