Home Attorneys & Law The Court’s Pause: A Necessary Change for Victims

The Court’s Pause: A Necessary Change for Victims


Better late than never, some changes to the law.
In 1978 Congress passed the Bankruptcy Reform Act that created Chapter 11 of U.S. Bankruptcy Code. Chapter 11 of Federal Bankruptcy Code was designed to help honest businesses in hard times. The law gave them a fresh start. It allows the company to continue their day-to-day business operations during the reorganization and protects them from the creditors.
The class action defendants and their lawyers have enjoyed the greatest benefits over the past 40 years. Congress’s intended protections have become the most powerful legal shields for negligent institutions and bad actors. In their repeated sprints to the U.S. Bankruptcy Court, they have blazed a trail. Purdue Pharma is one of the most notable. Other notables include Boy Scouts of America (BSA), USA Gymnastics and the Catholic Church.
Why should the debtor be given federal statutory protection from legitimate legal claims based on the debtors’ very failure to protect victims who are simply seeking justice? Our federal bankruptcy laws should serve who? Some Justices of the United States Supreme Court may be asking similar queries.
This month, the U.S ….

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