Panama City Mortgage Attorney Highlights Congregational Input on Chapter 11 Bankruptcy
August 31, 2021 at 22:41
Panama City, FLA. - Chapter 11 bankruptcy can protect a business or nonprofit from its lenders, but bankruptcy judges generally extend those identical protections to associates, partners, and others with stakes in the outcome. According to the Panama City Mortgage Attorney, shielding third parties from liability in return for settlements has become a more common practice in large chapter 11 cases.
In the United States Congress, the Democratic party members have begun pushing for a greater legislative action to prevent bankruptcy courts from protecting those accused of wrongdoing but who refuse to apply for chapter 11 bankruptcy. The practice has been also been criticized by other members of Congress. Those who are against this practice have proposed that bankruptcy courts not sign away their legal rights against third parties until every interested creditor agrees and has given permission.
This legislation would completely transform the way chapter 11 courts address misconduct allegations that have forced large companies and institutions into bankruptcy. It stands to set a precedent in courts for all case types ranging from standard workplace discrimination to defective products. It has become a common practice for bankruptcy courts to declare nonconsensual releases to third parties for years. However, Congress is now investigating the tradition more intimately following the bankruptcy filing by OxyContin producer Purdue Pharma LP to determine thousands of suits originating from opioid addiction in individuals.
The law office of Lewis and Jurnovoy, P.A. have been keeping the entire Florida Panhandle up to date on critical bankruptcy news for more than two decades. The expert debt consolidation lawyers can offer their clients a variety of options that meet every financial need. For a free consultation, Florida residents are encouraged to contact Lewis and Jurnovoy, P.A. Attorneys at Law at (850) 913-9110 or to visit their website at www.LewisandJurnovoy.com
For more information about Lewis & Jurnovoy, PA - PCB, contact the company here:
Lewis & Jurnovoy, PA - PCB
2714 West 15th St
Panama City, FL 32401