Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I keep my car if I file bankruptcy?”
Most of the time when bankruptcy is discussed it is seen as a terrible thing. Whether it’s a person or a company that has filed for bankruptcy protection, the news is generally treated as a failure. Recent news helps highlight why such a view is often incorrect and fails to acknowledge the many cases where bankruptcy protection provides a much needed chance to restructure, allowing businesses and individuals to get back on their feet.
A report issued by an automotive industry expert found that in the case of General Motors, the combination of a government bailout and bankruptcy restructuring helped save the company and, with it, 1.2 million jobs. Beyond saving the multitude of jobs, the report concluded that the bankruptcy also preserved $34.9 billion in tax revenue that would have evaporated if GM had simply shut down.
The report, which was written by experts at the Center for Automotive Research, says that had the bailout and bankruptcy not been allowed, both GM and Chrysler would have ultimately gone under. In such a nightmare scenario, the majority of job losses would have occurred in 2009 and 2010 and the entire American automotive industry would have been permanently reshaped.
Ford’s CEO, Alan Mullaly, recently spoke on the subject of the bailouts, saying that even though Ford did not need to take a bailout itself, he was willing to testify on behalf of his competitors given the damage their collapse would have done to the country. Mullaly said that if GM and Chrysler had collapsed completely then what was already a recession would have turned into a depression. Additionally, dozens if not hundreds of other, smaller automotive suppliers would have collapsed along with GM and Chrysler.
The report by the Center for Automotive Research also found that by allowing the bailout and bankruptcy of GM and Chrysler, in 2009 alone, 2.6 million jobs were saved in the American economy when other auto suppliers are included. Using this same approach, the group concluded that more than $280 billion in personal income was saved during 2009 and 2010 thanks to the restructuring.
Beyond financial measurements, the report says that had the companies collapsed it would have resulted in a massive realignment of the automotive industry, pushing workers from the upper Midwest into the southeastern United Sates where foreign carmakers have been building manufacturing facilities. The shift would have left places like Michigan with rampant unemployment problems and devastated the state’s largest industry, perhaps forever.
Though no one relishes the idea of filing for bankruptcy, the recent report reveals just how beneficial bankruptcy protection can be in some cases. When a person or business simply needs to restructure debts, bankruptcy can be a great way to get some relief from creditors and then come back better than ever.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.