2009 Isn’t That Long Ago For General Motors

2009 seems a long time ago for people. Remember Cash for Clunkers, the stock market tanking and the government handing over millions so General Motors would stay in business.

This year GM is still having problems regarding their bankruptcy in 2009. They are in court because of certain automobile accidents from before 2009 that are connected with the current ignition problem.

If you’ve read my previous blog post on this subject: “General Motors (GM) Accused of Hiding Ignition Flaws in 2009 Bankruptcy” then you know that plaintiffs are working to not allow GM immunity due to procedure and court approval from their exit from the 2009 bankruptcy.  The point at issue: GM may have committed bankruptcy fraud by not disclosing ignition defects, according to a developing Detroit News report.

The Forgotson Law Firm is one of Oklahoma City’s premier Chapter 7 bankruptcy and Chapter 13 bankruptcy firms. If you ever find yourself in the stress of considering bankruptcy, call or schedule your FREE initial consultation.

Forgotson Law
1230 S.W. 89th, Suite A
Oklahoma City, OK 73139
405-703-4567

Pop Star Aaron Carter Files Chapter 7 Bankruptcy

Bankruptcy isn’t something we think happens to people on TV or in pop culture, but it did for Dancing with the Stars’ Aaron Carter.  While on the show in 2009 he was contacted by multiple financial companies about his past finances when he was a minor and not in control of his earnings.

Carter, now 25 years old, filed for Chapter 7 Bankruptcy and claimed in the filing he has assets totaling $8,232.16.  This includes a 61-inch flat-screen TV, two MacBooks, two headsets, a mini keyboard, a Beatbox portable, a speaker, a guitar, a Louis Vuitton backpack, a duffel bag, a printer, $60 in cash and his dog.  He lists his average monthly income at $$1,998.75

Carter owes creditors more than $2 million in liabilities and a large amount of that is for the IRS- their chunk is $1,368,140.  The majority of his tax problems come from 2003 when he made millions, but was 15 and probably too young to understand tax law.

The Forgotson Law Firm is one of Oklahoma City’s premier Chapter 7 and Chapter 13 bankruptcy firms.  If you ever find yourself in the stress of considering bankruptcy, call and schedule your FREE initial consultation.

Forgotson Law
1230 S.W. 89th, Suite A
Oklahoma City, OK 73139
405-703-4567

 

General Motors (GM) Accused of Hiding Ignition Flaws in 2009 Bankruptcy

http://money.cnn.com/video/news/2014/04/15/gm-ceo-mary-barra-recall-ignition-switch-new-york-auto-show-nyas-nada.cnnmoney/

Did General Motors conceal its ignition defect, resulting in at least 13 deaths so far, in 2009 when it filed for bankruptcy? Back then GM received close to $50 billion in tax payer money to stay in business. Lawyers are pressing the case that GM intentionally concealed that defect.

Yesterday, 4/21/2014, GM filed papers seeking to protect itself from suits related to the ignition switch recall, which the company has tied to at least 13 deaths. The plaintiff’s lawyers are making the point that GM should not be allowed to use the 2009 bankruptcy reorganization to protect itself from liability coming from their faulty ignition switch.

Some of the largest problems looming over GM from their recall are:
1. Government investigations
2. Criminal probe
3. Dozens of lawsuits

These exist because GM took a very long time to issue the recall.

Here’s the fine print on why GM is seeking protection from the above list: GM (“Old GM”) went bankrupt in 2009 and created a “New GM” company that purchased the valuable assets of the bankrupt Old GM. The liabilities of Old GM did not come to New GM and this was approved by the courts as being in the best interest of keeping the New GM in business and able to move the company forward.

GM’s said in its filing Monday that it’s seeking protection from suits alleging economic damages, not from those brought over accident deaths or injuries.

The Forgotson Law Firm is one of Oklahoma City’s premier Chapter 7 and Chapter 13 bankruptcy firms. If you ever find yourself in the stress of considering bankruptcy, please call for your FREE initial consultation.

Forgotson Law
1230 S.W. 89th, Suite A
Oklahoma City, OK 73139
405-703-4567
http://www.forgotsonlawfirm.com