Bankruptcy Lawyer Bryan W. Stone answers the question: “Can I get credit after filing personal bankruptcy?”
If you pay much attention to the news you’ve likely heard about Donald Trump and his past financial problems. Though Trump claims he’s a billionaire many times over, his opponents enjoy pointing out his repeated financial distress. The claim from rivals is that the man has filed for bankruptcy four times before. The argument often made is that because he presided over so many bankruptcies of his own, he shouldn’t be trusted to watch out for the financial security of a country far larger and more complex than any of his businesses.
Putting that argument aside, a recent report by NBC News appears to take issue with the claim that Trump has filed for bankruptcy four times. Though the claim is repeated often, in reality, experts say he appears to have filed for bankruptcy protection a total of six times.
A reporter uncovered that starting a little more than 18 years ago, Trump’s various businesses filed for bankruptcy reorganization six different times, five in New Jersey and once in New York. The list includes: Trump Taj Mahal in 1991; Trump Castle Hotel and Casino, 1992; Trump Plaza Associates, 1992; Plaza Operating Partners, 1992; Trump Casino Holdings, 2004; and Trump Entertainment Resorts, 2009.
You may be wondering why so many reports got the number wrong for such a long time. One theory is that because three of the bankruptcies were filed at the same time (all in 1992) that many lumped them together as one claim, when in reality they were for different entities and ought to be viewed independently.
Trump himself has appeared unsure of how many times he’s filed for bankruptcy protection. Trump noted in a debate that out of hundreds of deals that he’s done, he’s taken advantage of the” laws of the country” (meaning filed for bankruptcy) on only four occasions. In another instance, he said that it had happened “three, maybe four times.”
Trump is also quick to note, which experts confirm, that none of these bankruptcies were personal. Instead, each was tied to a Trump company, meaning the man himself has never personally sought the protection of a bankruptcy court. Trump also argues that the bankruptcies were a smart decision and ultimately worked out for the best. Though some experts agree that the bankruptcies were the right call given the mountains of debt involved, they do note that they weren’t without victims as individuals and creditors lost money to allow Trump’s restructuring to succeed.
If you are contemplating bankruptcy in the Charlotte area, please call the skilled lawyers at Arnold & Smith, PLLC find additional resources here. As professionals who are experienced at handling all kinds of bankruptcy matters, our attorneys will provide you with legally sound advice for your particular situation.
About the Author
Kyle Frost joined Arnold & Smith, PLLC in 2013 where he focuses his practice on all aspects of civil litigation and bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord-tenant issues.
Born and raised in upstate New York, Mr. Frost attended the University at Albany on a Presidential Scholarship, graduating magna cum laude with a double major in Political Science and Sociology. He went on to attended Wake Forest University School of Law in Winston Salem, North Carolina.
Following college, Mr. Frost spent over a year teaching English in South Korea. He worked in a private school in Seoul developing curriculum, English programs, and educating both children and adults that were interested in learning a new language.
In his spare time, Mr. Frost enjoys homebrewing, fishing, and travelling.
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