Largest Corporate Bankruptcies in the United States
- By Frank Luke
- Published 10/27/2011
- National, State, Local
- Unrated
Over the years, there have been many bankruptcy cases in the United States. The biggest cases usually involved large corporations that declared insolvency and were either forced to make a payment plan or go out of business. Many of the companies that have been among the 10 most notable bankruptcies in the U.S. engaged in bankruptcy credit repair. By going through this process, they were able to manage their financial problems more effectively and eventually get out of debt. However, some were unable to recover and are no longer in operation.
The first most notable bankruptcy is the collapse of Lehman Brothers, one of the investment banks that went under due to the financial crisis of 2008. Lehman Brothers was forced to file bankruptcy in September of that year, in what is now known as the largest corporate filing in U.S. history.
Washington Mutual, another bank, is the second notable bankruptcy case in recent years. During its heyday, it was one of the largest savings and loan institutions in the nation. However, Washington Mutual lost billions of dollars due to the many bad loans that it gave to homebuyers. As a result, many customers withdrew their funds and the bank was bought by JP Morgan Chase.
WorldCom was among the largest long distance telecommunication firms in North America. It filed for bankruptcy in 2002 after being involved in an accounting
scandal. The company regrouped under bankruptcy protection and renamed as MCI, which was then bought out by Verizon.
Automotive corporation General Motors filed for bankruptcy back in late 2008 due to decreasing sales and poor financial results. It was the largest industrial company to ever file for bankruptcy.
The CIT Group, which provides financing and leasing capital to small businesses, filed for Chapter 11 bankruptcy in 2009 (Chapter 7 bankruptcy and Chapter 13 bankruptcy are for private individuals). It was among the troubled financial institutions that were adversely effected by the recession and the financial crisis of 2008.
Energy giant Enron, one of the largest energy distributors in the world and was once ranked as high as seventh in the list of Fortune 500 companies in the U.S., collapsed in 2001. It was forced to file for bankruptcy after an accounting scandal and financial mismanagement. Enron previously held the dubious distinction of being the largest bankruptcy in America until the record was broken by WorldCom and Lehman.
Conseco Inc., once one of the most important insurance companies in the U.S., filed for Chapter 11 bankruptcy in 2002. Its debt reached $2.1 billion but it was able to recover after reorganization and is now known as the CNO Financial Group.
Automaker Chrysler, investment company Thornburg and California utility Pacific Gas are also among the most notable bankruptcies in the history of the United States.
The first most notable bankruptcy is the collapse of Lehman Brothers, one of the investment banks that went under due to the financial crisis of 2008. Lehman Brothers was forced to file bankruptcy in September of that year, in what is now known as the largest corporate filing in U.S. history.
Washington Mutual, another bank, is the second notable bankruptcy case in recent years. During its heyday, it was one of the largest savings and loan institutions in the nation. However, Washington Mutual lost billions of dollars due to the many bad loans that it gave to homebuyers. As a result, many customers withdrew their funds and the bank was bought by JP Morgan Chase.
WorldCom was among the largest long distance telecommunication firms in North America. It filed for bankruptcy in 2002 after being involved in an accounting
Automotive corporation General Motors filed for bankruptcy back in late 2008 due to decreasing sales and poor financial results. It was the largest industrial company to ever file for bankruptcy.
The CIT Group, which provides financing and leasing capital to small businesses, filed for Chapter 11 bankruptcy in 2009 (Chapter 7 bankruptcy and Chapter 13 bankruptcy are for private individuals). It was among the troubled financial institutions that were adversely effected by the recession and the financial crisis of 2008.
Energy giant Enron, one of the largest energy distributors in the world and was once ranked as high as seventh in the list of Fortune 500 companies in the U.S., collapsed in 2001. It was forced to file for bankruptcy after an accounting scandal and financial mismanagement. Enron previously held the dubious distinction of being the largest bankruptcy in America until the record was broken by WorldCom and Lehman.
Conseco Inc., once one of the most important insurance companies in the U.S., filed for Chapter 11 bankruptcy in 2002. Its debt reached $2.1 billion but it was able to recover after reorganization and is now known as the CNO Financial Group.
Automaker Chrysler, investment company Thornburg and California utility Pacific Gas are also among the most notable bankruptcies in the history of the United States.
Frank Luke
Frank Luke writes for EdLopezLaw.com. Filing for bankruptcy allows you to eliminate debts or repay them under the protection of the bankruptcy court. Set up an appointment with Ed Lopez Law to find out if your course of action is Chapter 7 bankruptcy (to liquidate assets to pay your debts) or Chapter 13 bankruptcy (to create a repayment plan).
View all articles by Frank Luke