Crestview, FLA. - Among congressional Democrats, bankruptcy courts face backlash over the growing trend of protecting accused wrongdoers without seeking chapter 11 protection themselves. According to the local Crestview debt relief lawyers, while bankruptcy grants protection to corporations and nonprofits from their creditors, bankruptcy judges often allow the equivalent security to their affiliates, owners, and additional individuals who have interests at stake. The practice of protecting third parties from responsibility through settlement payments has become increasingly accepted in extensive Chapter 11 cases, according to bankruptcy experts.
In order to prevent bankruptcy courts from settling third-party legal claims, Congressional leaders are now considering prohibiting the signing away of legal claims without the agreement of all creditors. Despite bankruptcy courts issuing nonconsensual releases to third parties for ages, Congress is examining the system afresh because of OxyContin producer Purdue Pharma LP's bankruptcy filing in 2019 in order to settle thousands of lawsuits arising from opioid addiction. Additionally, many lawsuits have been filed against members of the Sackler family who own and control the company.
Democrats hope to block a key element of Purdue's repayment plan, as well as limit bankruptcy courts' power to freeze litigation against third parties while repayment plans are formed.
Lewis and Jurnovoy are dedicated to monitoring and providing up-to-date information on all changes in the outlook for bankruptcy law in order to help the local community stay informed. With more than 20 years of experience in the industry, Lewis and Jurnovoy offer quality bankruptcy services and debt help to clients across the panhandle. The local bankruptcy lawyers specialize in Chapter 11 and Chapter 13 bankruptcy, working to achieve the best financial outcome for each client. For more information or to schedule a free consultation, give Lewis and Jurnovoy a call at (850) 409-3350 or visit them online anytime at www.LewisandJurnovoy.com.
SOURCE: Press Advantage [Link]
The primary emphasis of our law firm is in the representation of individuals in Chapter 13 bankruptcy, Chapter 7 bankruptcy,mortgage foreclosures, mortgage modifications and protecting against abusive debt collectors.
April 29, 2022 – Local Attorneys Discuss Bankruptcy Filings Increase
February 17, 2022 – Local Lawyers Discuss Declining Bankruptcy Filings Amid Rising Credit Balances
February 03, 2022 – Crestview Bankruptcy Lawyers Discuss Buying a House After Bankruptcy
September 21, 2021 – Crestview Bankruptcy Lawyers Highlight Recent Spike in Collection Activities