Debt Consolidation Lawyers Highlight Congressional Response to Chapter 11 Bankruptcy
Fort Walton Beach, Florida. – House Democrats are now criticizing bankruptcy courts for granting legal protection to accused torts who have not themselves sought Chapter 11 protection. According to Fort Walton Beach debt consolidation attorneys, a corporation or nonprofit business to file for Chapter 11 is protected and protected from its creditors, but bankruptcy judges also extend these legal protections to its affiliates, owners, and other interested parties. Congress is starting to see this as a major problem in some of the huge cases, and they have started pushing for some type of change. Bankruptcy experts say the exclusion of third parties from any settlement payments in exchange for liability shields is increasingly common in large Chapter 11 cases.
In response, some members of Congress believe the method has gone too far and recommend preventing bankruptcy courts from using this legal tactic unless all affected creditors agree and give permission.
As a result, the way Chapter 11 courts deal with a variety of alleged misconduct, including sexual abuse, defective products and more, may be in turmoil in the near future. In 2019, OxyContin maker Purdue Pharma LP filed for bankruptcy to settle thousands of lawsuits filed by state and local governments over opioid addiction, leading Congress to consider the tradition of a new manner.
Lewis and Jurnovy are here to help the Florida Panhandle keep up to date with the latest bankruptcy news. Trusted lawyers have been providing bankruptcy assistance in and around Fort Walton Beach for over 20 years. Lewis and Jurnovoy also host Bankruptcy Hour every other Tuesday on Blab TV where they answer questions about bankruptcy during live programming. For more information or for a free debt consultation, call Lewis and Jurnovoy at (850) 863-9110 or visit them online anytime at www.LewisandJurnovoy.com.
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Lewis & Jurnovoy, PA-FWB
Steven D. Jurnovoy and Martin S. Lewis
151 South Mary Esther Coupé NW Ste 103, Mary Esther, FL 32569