Donald Trump, the current frontrunner for the Republican presidential nomination, has come under fire from both the media and the other candidates for his business record. Although Trump has never filed for personal bankruptcy, he has reportedly filed for business bankruptcy at least four times. Trump responded to the criticism by arguing that businesses often have to file for bankruptcy and that filing for bankruptcy was a financially sound move each time he did it. In fact, during the September 16 Republican debate, Trump observed that “hundreds of companies” have done the same thing.
PolitiFact, the Tampa Bay Times’ award-winning fact-checking blog, recently analyzed the claims, from both sides, about Donald Trump’s business bankruptcies in an article straightforwardly titled “Fact-checking claims about Donald Trump’s four bankruptcies.” The website found that there is validity to many of Trump’s points about business bankruptcy being in the best interests of companies.
Trump has filed for business bankruptcy four times: the Trump Taj Mahal in 1991, Trump Plaza Hotel in 1992, Trump Hotels and Casinos Resorts in 2004 and Trump Entertainment Resorts in 2009. Each time, the bankruptcy was a Chapter 11 filing.
While Chapter 7 and Chapter 13 bankruptcy deal with personal bankruptcies, Chapter 11 is most often used by businesses filing for bankruptcy. Chapter 11 bankruptcy allows a financially struggling business to reorganize in order to keep going. A Chapter 11 filing can potentially enable a business owner to avoid liquidating the company. In fact, it can often be said that a Chapter 11 bankruptcy is in the best interests of the business and in no way a reflection of a poorly run company.
PolitiFact took a look at all four of Trump’s Chapter 11 bankruptcies and determined that they were a result of business struggles largely beyond the billionaire-turned-presidential-candidate’s control.
Like Trump in 1991, 1992, 2004 and 2009, you may be considering filing for bankruptcy due to circumstances largely beyond your control. The right attorney can help you look into filing and guide you through the bankruptcy process in New Jersey or Pennsylvania.
Joel R. Spivack Esq. is an experienced bankruptcy attorney who specializes in helping individuals through personal bankruptcy. Contact him today to help you explore your legal options so that you can move on with your life and make a fresh financial start.