USPS Heading Towards Bankruptcy


If the United States Postal Service (USPS) were an ordinary private company, it would have filed for Chapter 11 bankruptcy already. With the massive drop of about 6 billion in mails, especially from first class, they lost about $8.5 billion in the fiscal year ended September. The USPS said it would run out of money in 2011 if Congress doesn’t step in to rescue them in the event the economy does not recover.

The USPS now delivers some 170.6 billion pieces of mail per year. Contributions of about $5.4 billion towards pre-fund retiree health benefits and another $2.5 billion to the government’s workers’ compensation insurance scheme also led to the poor financial performance. Because USPS is a quasi-government organization, it has workers’ compensation obligations to help fund four major disability compensation programs.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Tampa Bay Bankruptcy Center, P.A. | Attorney Advertising

Written by:


Tampa Bay Bankruptcy Center, P.A. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.