Fort Walton Beach, Florida. – The Democrats in the House of Representatives are now criticizing bankruptcy courts for granting legal protection to accused criminals who have not applied for protection under Chapter 11 themselves. According to Debt Consolidation Lawyers in Fort Walton Beach, a Chapter 11 corporation or nonprofit filing is shielded and protected from its creditors, but bankruptcy judges also extend that legal protection to its affiliates, owners, and other interested parties. Congress is starting to see this as an important issue in some of the big cases, and it has started pushing for some kind of change. Bankruptcy experts say that in major Chapter 11 cases it is becoming increasingly common to exclude third parties from making any settlement payments in exchange for liability umbrellas.
In response, some congressmen feel the method has gone too far and recommend preventing bankruptcy courts from using this legal tactic unless all creditors involved agree and give their consent.
As a result, the way in which Chapter 11 courts deal with a wide variety of alleged wrongdoings, including sexual abuse, faulty products, and much more, may be turned on its head in the near future. In 2019, OxyContin maker Purdue Pharma LP filed for bankruptcy to resolve thousands of lawsuits from state and local governments of opioid addiction, prompting Congress to re-examine the tradition.
Lewis and Jurnovy are here to help the Florida Panhandle stay up to date on the latest bankruptcy news. The lawyers of the trust have offered Bankruptcy assistance in the Fort Walton Beach area for more than 20 years. Lewis and Jurnovoy also host Bankruptcy Hour every other Tuesday on Blab TV, where they answer bankruptcy questions on live programming. For more information or free debt counseling, call Lewis and Jurnovoy at (850) 863-9110 or visit them anytime online at www.LewisandJurnovoy.com.
For more information on Lewis & Jurnovoy, PA-FWB, contact the company here:
Lewis & Jurnovoy, PA – FWB
Steven D. Jurnovoy and Martin S. Lewis
151 South Mary Esther Cut Off NW Ste 103, Mary Esther, FL 32569