Trump's four bankruptcies were Chapter 11 reorganizations (named for its location in federal bankruptcy code), which are designed to restructure businesses without shutting them down completely. The purpose is to "save" the business, as opposed to other forms of bankruptcy which would liquidate the company, said Michael Venditto, a partner at the ReedSmith law firm who has extensive experience with Chapter 11.
In other words, no one was stiffed out of money. Everyone was paid. Trump paid. Despite these business losses, the built an empire worth billions.
Reorganization Chapter 11 is NOT 'Walk Away from Problems Chapter 7'.
Precisely the point. While we don't have the final details on all of the restructuring, generally Trump would have gotten longer to pay off the loan and lower interest rates (which the bank would have been happy to have given the lousy business environment they faced).
Re: “In other words, no one was stiffed out of money. Everyone was paid. Trump paid.”
Really?
Trump’s creditors were paid in full?
So, why did Trump and his creditors spend millions of dollars to go to court?
Why didn’t they all sit down in Trump’s office and settle the problem in a couple hours - and for free?
Exactly. Contrary to Rubio’s lies and Cruz’s lies about Trump and Bko’s, MOST people only know about the kind of BKO they file to escape all debt (like most here on FR.... how many of them have filed??!)
Cruz is a LAWYER...he KNOWS he lied about this.