As of late, we read many examples of corporations filing the big 'B' in various newspapers and online. In August, I discussed how clothing retailer Steve & Barry's had filed for bankruptcy, but were still expected to remain open in their Terre Haute location. http://gcdailyworld.com/blogs/chriswathe... Word has it now that they will be closing this location. Linens-N-Things and Circuit City both filed for bankruptcy, too, recently.

These better-known examples, with locations in nearby Terre Haute & Bloomington, raise some interesting questions as we approach the Christmas season…

In these and other stories, we find that banks have loaned millions of dollars to corporate borrowers both secured -- and unsecured -- who go bankrupt. Often, I've heard people comment, "Well, the bank had it comin' if they didn't have any collateral to back these loans." Yet, do you know who else is an 'unsecured' creditor, who might be left holding the bag if a company files for bankruptcy?

Perhaps, you! (That puts a different perspective on things, doesn't it?)

'Tis the season for giving, and soon billions of dollars will change hands via gift cards. If you are in possession of a gift card, you may feel pretty insecure this holiday season as several retailers file for bankruptcy protection or otherwise go out of business. In fact, this Christmas, it could be said the Grinch comes in a different form: corporate bankruptcy!

See, when a corporation files bankruptcy, a gift card holder is deemed an 'unsecured creditor' and is thrown in the mix behind the secured creditors. While some companies continued to honor the cards, others haven't, while yet others have added 'strings' to redeem them. There seems to be no set of rules when it comes to gift certificates & cards in a corporate bankruptcy that I've found.

I suppose you could file a creditor claim in the company's bankruptcy, but it seems hardly worth the paperwork for a few bucks on a card -- and no assurances anything would ever come of it anyway.

As you may recall, I wrote about gift cards last year about this time: http://gcdailyworld.com/blogs/chriswathe... Then, the issue was different, but the end result was the same: people losing money on gift cards.

As the pitfalls mount against gift cards, maybe it's just best to stick with cash in a card if nothing else…