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True Dork Times Investigative Report "I guess they didn't get the insurance" Inside the Budget/ Ryder bankruptcy filing By Sue Persighs |
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| On Monday, July 29th, Budget Group Inc, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court. The company, which rents cars and trucks under the Budget and Ryder brand names, listed assets of $4.05 billion and debts of $4.33 billion in its Chapter 11 petition. As a respectable publication, we had our crack reporting team inside the courtroom, secretly taping the proceedings. Here's how the filing went: | |||||
| Budget Lawyer:
Your Honor, we are here today to file for Chapter 11 Bankruptcy. We have
reserved a trial date, and I think everything is ready to go. Judge: Well I don't know about that. Okay, I see you on the court docket for a Chapter 11, are you sure you don't want to upgrade to a Chapter 12? Budget Lawyer: Excuse me? Judge: We have lots of Chapter 12's available, and I am sure you would be happier in a Chapter 12, it is only slightly more expensive. Chapter 11's can be awfully uncomfortable for large companies. Budget Lawyer: I don't think we need a Chapter 12.... Judge: But it's so much roomier than the Chapter 11, and we have one ready to go, it's all docketed and clean. Budget Lawyer: No I think we will stick with Chapter 11.... Judge: Well that's your call, now you will obviously be signing up for the bankruptcy malpractice insurance. Budget Lawyer: Umm, no. Judge: But how can you not? You have to get the extra insurance, especially if you are just sticking with a Chapter 11, which of course, I think is a big mistake. Budget Lawyer: I am sorry, your honor, I just want to file what I signed up for and be on my way. Judge: I just can't in good conscience let you leave without at least the minimal coverage courtroom injury insurance. You probably aren't covered for that. Budget Lawyer: I think my bar dues cover that actually.... Judge: Well I don't know, you are taking a big risk, and it is only a little more expensive per trial day. Budget Lawyer: Please! Please! I already made these decisions when I signed up for this in the first place. Can I just have my case number and trial date and leave? Judge: Of course, of course! But first, there is the little matter of court fees. Now, you can pay a lump sum now, which may be more than the actual fees, but then when the case is over you can just leave the bankruptcy and walk away. Budget Lawyer: Can't I just pay the clerk outside when the case is over? Judge: Sure, sure, but how do you know that by the time the case is over fees haven't skyrocketed to over $2.00 a motion? There is no way to know. You should just pay. Budget Lawyer: Fine. Fine. Can I go now? Judge: Yes, I am just going to need you to initial some forms. You will notice that this is significantly more than the price you reserved the Bankruptcy at, but I am going to have to ask you just to sign the form without question. Now, first initial here, indicating that this is the rate you are going to pay... then here, indicating the fee prepay... then here, indicating that you did not want the upgrade, nor the insurance, nor even the minimal coverage - which I remind you is a big mistake! Budget Lawyer: Okay, is that all? Judge: Yes. Oh, wait... one more thing. Actually, we don't have any openings for a Chapter 11 for quite a while, so I am going to automatically move you up into a Chapter 12. This will of course involve more fees. Now, because you are in a Chapter 12, have you considered insurance? Back to the True Dork Times |
