The National Bankruptcy Research Center reported that there were 135,914 bankruptcies in October, up 9%. One third of the bankruptcies were filed under Chapter 13. Chapter 13 requires that the court set up a five year repayment plan for debts owed.

In addition business bankruptcies were up 7% for the same period.The forecast is for 1.4 million bankruptcies in 2009, the highest since 2005. In that year Congress revamped the bankruptcy laws to make it more difficult to wipe out all of a person's debts. There was a rush of filings in the months just before the new law was enacted.

CIT Group (NYSE: CIT) has filed for bankruptcy -- which will lead to the wipeout of the United States taxpayers' $2.3 billion "investment" in the company.

At least, it was billed as an investment at the time, which it was, in the same way that lending your crack junkie cousin beer money is an investment.

"The decision to proceed with our plan of reorganization will allow CIT to continue to provide funding to our small business and middle market customers, two sectors that remain vitally important to the U.S. economy," Jeffrey M. Peek, CIT's Chairman and CEO, said in a statement. "This market-based solution allows CIT to enter into the reorganization process well-prepared and positioned for a swift emergence."

You're now free to invest in Iceland ... should you be so inclined. On Sunday, the country will begin lifting its post-financial disaster capital controls, giving investors a bit more elbow room. Foreign currency investments coming in won't be subject to the existing controls.

According to a statement released by Iceland's central bank, "Investors are authorized, without restrictions, to convert into foreign currency the sales proceeds from assets in which they invest after Nov.1." The statement also said, "Previously, non-residents were fully authorized to transfer foreign currency deriving from interest and dividends on investments in Iceland."

CIT Group is one of the largest lenders to small- and medium-sized businesses in the U.S. But it has been plagued with financial troubles for nearly a year now. Last year the firm received $2.3 billion in federal bailout money. That helped them stave off bankruptcy for a while. Then this past July it received another $3 billion loan from some of its largest bondholders.

Apparently these stimulus packages are not enough to keep CIT Group Inc. (NYSE: CIT) afloat. The root of the problem is $30 billion dollars of outstanding debt. The latest maneuver would be to offer bondholders a stake in the company. This move would eliminate 40% of its outstanding debt, according to a Wall Street Journal report.

The key sticking point here is that by turning over control to bondholders, common shareholders would be wiped out. In addition, the $2.3 billion in federal stimulus money would go up in smoke.

For 2009 so far, bankruptcy filings are skyrocketing. In August, filings were up 22% year-over-year, and Nevada has become taken the dubious honor of leading the nation in bankruptcies (Tennessee is #2).

More than 950,000 bankruptcy filings have occurred this year, compared to slightly over 700,000 last year. By December, it could come close to 1.5 million.

It seems that no print publication is immune from the wrenching changes in the publishing industry. Look at Reader's Digest. The company said it will likely file for a so-called prearranged Chapter 11 bankruptcy.

The main reason: to pare down the heavy debt load.

Repros Therapeutics (NASDAQ: RPRX) easily takes the prize for most dismal earnings report of the day. Not only did the drug firm report a wider-than-forecast second-quarter loss, it also warned that bankruptcy is a real possibility unless the company can secure significant additional capital.

Specifically, Repros confessed to a second-quarter net loss of $8.9 million, or 59 cents per share, compared to Wall Street's consensus estimate for a loss of 46 cents per share. The company chalked up its poor results to a 16% annualized increase in clinical development activities for Proellex -- which has been placed on clinical hold by the FDA -- as well as a 60% year-over-year jump in general and administration expenses.

As if there weren't sufficient causes already to refer to CIT Group (NYSE: CIT) as "beleaguered," the list just got longer. This morning, the financial services firm delayed filing its second-quarter report with the Securities and Exchange Commission (SEC), citing the ongoing restructuring of its debt as a mitigating factor.

Specifically, CIT told the regulatory agency that it could not meet Monday's 10-Q deadline "without unreasonable effort and expense," since executives have been spending most of their time lately attending to restructuring needs. The company is expecting a second-quarter loss in excess of $1.5 billion, thanks in large part to a loss totaling $2.1 billion from its discontinued home-lending operations.

After filing for bankruptcy protection a month ago, Eddie Bauer Holdings Inc. (OTC: EBHIQ) is already seeing the suitors line up. Iconix Brand Group Inc. (NASDAQ: ICON), which owns Rocawear, is showing some interest. Hilco Consumer Capital and Gordon Brothers Group LLC are also looking to make a joint offer for the embattled clothing retailer, and Golden Gate Capital is said to be interested. Hudson Capital Partners LLC may throw its hat in the ring, as well.

Tomorrow's the bidding deadline, and there's an auction lined up for Eddie Bauer's assets on Thursday.

Already in the game, CCMP Capital Advisors ponied up $202 million in a "stalking horse bid," meaning that it will make the acquisition if nobody else beats its offer.

For now, Bauer's is living on borrowed time -- and cash. The company got court permission to take a loan for $100 million to keep the operation moving until an acquisition or auction is complete.

The private equity firms rumored to be eyeing Eddie Bauer have retail and apparel companies in their portfolios, which suggests a possibility that the company could be turned around with the right investment and management team. If not, I wonder if they'll sell the window decorations at the auction . . . always wanted my living room to look like a mall.

It's hard to know where to begin in addressing this interview, so you pretty much just have to watch it: Days after filing for Chapter 11 bankruptcy protection, retired outfielder Lenny Dykstra sat down with CNBC's Jane Wells to explain what happened.

The result is probably the most awkward 18 minutes and 32 seconds of television you'll ever see in your life. It's hard not to feel bad for him -- it's been an MC Hammer-like rise and fall, and I can't even imagine what that's like to go through. But why the heck would he go on CNBC to offer such incoherent rambling? Why would his lawyers let him do this?

I've covered Lenny Dykstra's financial woes pretty extensively here on BloggingStocks, so this latest bit of news isn't exactly shocking. Still, it's a sad culmination to the epic rise and fall of an athlete turned financial guru.

The Associated Press reports that the former New York Met has filed for bankruptcy, reporting liabilities of between $10 million and $50 million, compared with assets of less than $50,000.

Dykstra is just 46 years old, and his bankruptcy follows a slew of negative publicity and lawsuits surrounding failed business ventures.

Reportedly, a bankruptcy judge has given General Motors (OTC: GMGMQ) the okay to sell a majority of its assets to a new company. This move could open the path for General Motors to "quickly emerge from bankruptcy protection," the AP wrote. U.S. Judge Robert Gerber said in his ruling late Sunday that the sale "was in the best interests of both GM and its creditors," who would get nothing otherwise.

In his ruling, Gerber wrote, "As nobody can seriously dispute, the only alternative to an immediate sale is liquidation - a disastrous result for GM's creditors, its employees, the suppliers who depend on GM for their own existence, and the communities in which GM operates."

Yesterday, automotive parts supplier Lear (NYSE: LEA) announced that it is preparing to file for Chapter 11 bankruptcy protection. The company has also lined up financing to fund operations while it is under court protection.

LEA's subsidiaries outside of the United States and Canada will not be a part of the bankruptcy filing. According to the company, its "operations outside the United States and Canada are well-capitalized, well-positioned and have a strong backlog of new business."

The General Motors bankruptcy has been tough on most of the company's constituents, but not on its lawyers.

The Wall Street Journal reports (subscription required) that "Weil, Gotshal & Manges LLP earned $54 million in fees and expenses in the six months leading up to the auto maker's June 1 bankruptcy filing, according to a recent court filing by Weil Gotshal. Much of the $54 million didn't relate strictly to GM's Chapter 11, according to a Weil lawyer. The firm's lawyers are billing GM at a rate of $355 to $950 per hour."

The firm is trying to become lead debtor's counsel for the GM bankruptcy but hasn't yet received court approval. GM's other top two law firms earned a combined $26 million in fees.

Over the weekend, Six Flags Inc. (OTC: SIXF) announced it was filing for Chapter 11 bankruptcy (cue sad-trombone noise here). The company was saddled with $2.4 billion in debt and is taking this opportunity for a fresh start. None of the company's 20 parks -- located throughout North America -- will be closed. All Six Flags employees still have jobs, as well, so potential patrons should not feel as though corners are being cut.

Six Flags spokeswoman Sandra Daniels told the press that "This restructuring will have no impact on families who come out to our parks."