WSJ Reporting GM is Putting Ch. 11 Bankruptcy on the Table

The Wall Street Journal is reporting GM mulling bankruptcy protection:

The prospect of mighty General Motors Corp. tumbling into bankruptcy protection edged closer on the weekend, increasing the danger of a cascading collapse of a major chunk of the North American auto industry.

Talks between the United Auto Workers union and GM on concessions broke off and then resumed again as The Wall Street Journal reported that the auto maker will offer a restructuring plan to the U.S. government that includes Chapter 11 bankruptcy protection as one of its options.

The Wall Street Journal is also reporting:

The Obama administration will not appoint a "Car Czar." An inter-agency process, led by Geithner and Summers, will instead tackle issues relating to auto companies.

Now Bush is "Considering Orderly Bankruptcy" for the U.S. Auto Manufacturing Sector

U.S. auto manufacturing being hung out to dry? It sure looks that way!

Today Bush said he is considering an 'orderly' auto bankruptcy.

Uh huh. Anyone know of an orderly bankruptcy that didn't cause thousands of job losses? The automobile manufacturing supply chain is heavily OEMed. This means an entire chain of businesses, suppliers are involved in making cars and trucks.


Shutting off the Power and Other Bad News

Ah, utility companies are shutting off the power as more people cannot pay their bills.

In Pennsylvania, PPL Corp. increased shutoffs by 78% in the first three quarters of the year compared with the same period a year earlier
In Memphis, Tenn., the city-owned utility that supplies electricity, natural gas and water to residents cut off 38% more people in the first eight months of the year

and Bankruptcies pass 100k now equal to 2005.

Bear in mind that when the MNBA bill, oops I mean bankruptcy reform passed in 2005, this stopped many people from being able to get out of their debts.

If that's not enough:

Auto Sales worse since 1945

Seniors Going Broke - New Bankruptcy Study

While we are inundated with TV commercials promoting some illusion of early retirement and traveling in a six figure, gas guzzling RV for months at a time with the grand kids...reality is something completely different.

A new report(pdf) shows the opposite is happening. Americans are filing bankruptcy in droves and the most affected are older people.

Titled Generations of Struggle this study is by the Consumer Bankruptcy Project, sponsored by the AARP. Elizabeth Warren is one of the authors.



Action Alert for modifying bankruptcy law on mortgages

The AFL-CIO has put out an action alert:
The U.S. Senate is considering a bill (S. 2636) with a key provision that would fix bankruptcy policies to allow borrowers to restructure their mortgages in bankruptcy court.

You can protect thousands of families from losing their homes by asking your senators to support "Pay and Stay" (also known as Title IV of the Foreclosure Prevention Act, S.B. 2636)

Bankruptcy bill

Congress was blocked from changing the bankruptcy code last week but this report says the bill may once again have hope as Republicans are pressured to do something.

To allow bankruptcy judges to restructure mortgages to me is critical. Anybody tracking this, I'd love to learn more details.