Been seeing a lot about the Alex Jones case (sued by families of Sandy Hook victims for $1B.)
After bankruptcy, iquidating his assets (home? Car? Studio?) AND giving up his companies, he STILL owes more money/,
How can someone left with nothing (and still in debt) get basic care / necessities / housing when their income must all go to the lawsuit?
In: Other
This is the point of bankruptcy. Most of these court-ordered damages are dischargeable debts, meaning that (in the US) in a Chapter-7 bankruptcy, they will just be wiped out after the bankruptcy is completed. That’s not to say that this is a way to avoid paying altogether. Bankruptcy requires that you pay what you can, and do your utmost, which may include selling any (non-exempt) property (like a second home or other real estate, any art or jewelry, etc.). So e.g. if you are ordered to pay someone $10 million in damages, and the sum total of your non-exempt assets amounts to $5 million, then (if you have no other creditors that take priority in the bankruptcy settlement) you’ll still have to pay the $5 million.
To clarify, you cannot get rid of any and all debts this way. Some debts are non-dischargeable, including debts you owe the government, or if you are behind on child support or alimony payments (amongst other things).
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