Articles Tagged with General Motors

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Bankruptcy Lawyer Bryan W. Stone answers the question: “What is Chapter 11 Bankruptcy?”

One of the commonly understood virtues of filing for bankruptcy is that your pre-bankruptcy liabilities get wiped out. For individuals, this means that credit card debt or medical bills get wiped clean and creditors can’t come back years down the line and demand payment. The same is true for corporations. Those who have emerged from bankruptcy, especially those sold to new buyers after going into bankruptcy, expect a clean slate, something that makes buyers willing to take the risk of buying such companies in the first place.

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Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What are my alternatives to bankruptcy ?”

 

When General Motors ended its “swift” 2009 bankruptcy, it emerged a new company shielded from claims arising from bad, pre-bankruptcy debts and bad assets, according to Fox Business.

Ignition Switch Charlotte Bankruptcy Lawyer North Carolina Chapter 7 AttorneyLast week, however, a group of attorneys representing plaintiffs who allege their General Motors-made cars dropped in value as a result of defects in ignition switches argued before a New York bankruptcy judge that the company is not entitled to bankruptcy protection because it “engaged in fraud before and after” its 2009 bankruptcy sale.

The plaintiffs in the General Motors cases want the company to pay for “the lost resale value of the plaintiffs’ cars and for loaner vehicles and repairs,” according to Fox Business.

General Motors, on the other hand, argued to Judge Robert Gerber that the company is entitled to the bankruptcy shield, and that a bankruptcy court cannot “make changes and exceptions” to the protections afforded by the bankruptcy shield. The hearing was held before Judge Gerber in United States Bankruptcy Court for the Southern District of New York.

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