Our next Pre$ident is, obviously, stealing all the ideas in this amazing book. Good for him.
Here’s the NY Times crying like a baby about “How Donald Trump Bankrupted His Atlantic City Casinos, but Still Earned Millions.”
And, here – ironically from Chapter 18 – is where he got the idea:
CHAPTER 11 IS THE BEST CHAPTER IN ANY BOOK
If all else fails, declare bankruptcy, grab your severance, and let everyone else fight it out. It’s that simple. Really. Bankruptcy allows your deliberate and destructive misdeeds to be forgiven and to be done all over again. Along with its cousin Restate, Bankrupt is a Great Cheater’s best – and most legitimate – friend.
Bankruptcy has the dual purpose of allowing a debtor – one who owes debt, such as you – to make a fresh start, while his or her creditors – those who have a credit, or “chumps” – are repaid as best possible. Isn’t that cute? Pay back people you’ve scammed! Ha! As if!
Bankruptcy is not a crime. Not A Crime. There’s nothing wrong with declaring bankruptcy, which means its one of the safest – if least exciting – schemes in this book. Bankruptcy fraud, now that’s a legal no-no, but, hey, we’re not defrauding anyone, right? Riiiiight? Wink.
Bankruptcy dates back to biblical times. Even Ghengis Khan had a rule that mandated death for anyone who thrice became bankrupt. (Another reason to avoid living in the time of Ghengis).
Lately, bankruptcy has regained popularity. Over 80% of the largest U.S. corporate bankruptcies have occurred since the year 2000.
Modern corporate bankruptcy can fall under either Chapter 7 or Chapter 11.
In Chapter 7, a company goes out of existence and debts are often repaid by submitting assets for resale and distribution. That’s one way to go.
In Chapter 11 bankruptcy, your company attempts to stay in business while a court supervises “reorganization” of the company. Oh, but glory be, during reorganization you are protected from your creditors. In other words, the people you owe can’t do anything – not lawsuits, collections, garnishing wages, nor shaking fists – to get their money back. That’s right, the courts give you protection against the very people you’ve screwed over. Protection from the consequences of your incompetence! You’ll still get your salary, your severance, your performance bonuses and more. It’s easy: just file some paperwork… Heck, hire someone to file paperwork, and when they submit an invoice… Whoops! You’re bankrupt! In the words of Yakov Smirnoff, “What a country!”
At one point in 2006, over half the airline industry was operating under Chapter 11. They freed up cash, stopped making debt payments, even had price wars… all with court approval, while pilots and flight attendants got fired and your Tumi tote ended up in Ottawa.
In Chapter 11, you have to create a plan for reorganization (“Steal more money” is a good plan), and get your decisions approved by a bankruptcy judge. Another quick question: Who was a major contributor to that bankruptcy judge’s campaign? You? Oh really? Gosh, hope he approves your decisions.
Some commie pundits claim that operating under Chapter 11 protection provides an unfair advantage to the bankrupt company, that the system provides an “escape hatch” to incompetent management. Yes, it does excuse incompetent management… Shouldn’t it excuse corrupt management, too?
The bigger the company, the more devastating the consequences of bankruptcy – to investors, employees, and debtors. Notice who’s not on that list? You