Being in control of high assets does not necessarily preclude the need for bankruptcy protection. If the sum of your debts matches the sum of your assets, then you may need to look into whether you qualify for Chapter 7, Chapter 13 or Chapter 11 bankruptcy.
Earlier this month, dozens of claims tied to the recent General Motors defective ignition switch recall scandal were consolidated and sent before a federal court for matters of pretrial discovery. General Motors hopes that the process will continue to progress in such a way that federal courts will honor certain terms of the company’s business bankruptcy so that the company will not be held liable for harm done to certain plaintiffs currently pursuing action against it.How can bankruptcy protections keep GM from liability for harm done in accidents tied to its defective ignition switches? When GM was restructured under business bankruptcy protections several years ago, a federal bankruptcy judge held that GM would be shielded from liability for harm caused by models manufactured before the company was restructured in bankruptcy.