It is never fun filing for bankruptcy, but sometimes, it’s the only option you can think of. The following companies and individuals faced rough times and while some managed to walk out with dignity, the others were not as lucky.
1. Lehman Brothers
Lehman Brothers Holdings Inc. succumbed to the subprime mortgage crisis and became the biggest bankruptcy filing in history. The 158-year-old firm, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan on September 15, 2008. The collapse of Lehman, which Pre-Bankruptcy Assets were more than US $639-billion. Lehman was forced into bankruptcy after Barclays PLC and Bank of America Corp. abandoned takeover talks.
2. Washington Mutual
Washington Mutual (WaMu), was a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States’ largest savings and loan association until it became the largest bank failure in U.S. history for the time. WaMu, the 119-year-old Seattle-based thrift, sought Chapter 11 protection in U.S. Bankruptcy Court on September 26, 2008 and according to court records WaMu listed more than 327.9 billion in assets in its bankruptcy filing.
WorldCom, founded in 1983 as LDDS Communications, the nation’s second-largest long-distance company and the largest handler of Internet data, filed for Chapter 11 bankruptcy protection on July 21, 2002. The WorldCom filing had been anticipated since the company disclosed in late June that it had improperly accounted for more than $3.8 billion of expenses. The WorldCom filing listed more than $107 billion in assets.
4. General Motors
GM’s bankruptcy filing is the forth-largest in U.S. history and the largest for an industrial company. The company said it has $172.81 billion in debt and $82.29 billion in assets. After the Chapter 11 filing, effective June 8, 2009, GM was removed from the Dow Jones Industrial Average and replaced by Cisco Systems.
5. CIT Group
Lender CIT Group filed for Chapter 11 bankruptcy protection Nov. 1, 2009 with listed $71 billion assets in its bankruptcy filing. Disruptions in the credit markets coupled with the global economic deterioration led to bankruptcy filling that also took other biggest financial institutions. The lender funded about 1 million businesses across US, Canada, Europe and Asia.