September 2022

Judge reports threats, harassment over J&J talc bankruptcy

A bottle of Johnson and Johnson Baby Powder. REUTERS/Mike Segar/Illustration

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  • Judge revealed the harassment at a hearing on a J&J subsidiary’s effort to block two states’ consumer protection lawsuits

(Reuters) – A U.S. bankruptcy judge on Wednesday said he has received threats related to the bankruptcy of a Johnson & Johnson subsidiary he is overseeing, with some messages suggesting that the case is an effort to “cover up” harms allegedly caused by J&J’s talc products.

Chief U.S. Bankruptcy Judge Michael Kaplan in Trenton, New Jersey said at a hearing that he and his staff have been getting angry and menacing messages through phone calls, voicemails, emails and social media posts since his February decision not to dismiss the bankruptcy case of LTL Management LLC.

J&J created the subsidiary in October, assigned its talc liabilities to it and put it in bankruptcy a few days later, in an attempt to resolve approximately 38,000 lawsuits alleging that its Baby Powder and other talc products caused mesothelioma and ovarian cancer.

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J&J, which has denied the allegations and said that its products

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September 15, 2022 by ATTORNEY

It’s a ‘severe problem’ that student-loan borrowers are still facing roadblocks getting rid of their debt through bankruptcy, Elizabeth Warren says

It’s a ‘severe problem’ that student-loan borrowers are still facing roadblocks getting rid of their debt through bankruptcy, Elizabeth Warren says
It’s a ‘severe problem’ that student-loan borrowers are still facing roadblocks getting rid of their debt through bankruptcy, Elizabeth Warren says

Sen. Elizabeth Warren.Tom Williams/CQ-Roll Call, Inc via Getty Images

  • Elizabeth Warren called on the Justice Department to restore bankruptcy protections for student-loan borrowers.

  • Borrowers currently have to prove a difficult standard in court to get rid of their debt.

  • Biden’s administration has promised reform, but the process continues to be slow-moving.

Massachusetts Sen. Elizabeth Warren is renewing the call to restore bankruptcy protections for student-loan borrowers.

Last week, President Joe Biden took a major step in providing relief to millions of borrowers by announcing up to $20,000 in student-loan forgiveness for those making under $125,000 a year. While that relief is expected to wipe out balances for 20 million borrowers, the majority will still have debt balances that some might seek to discharge in court through bankruptcy. But doing so has historically been very difficult, and Warren wants Attorney General Merrick Garland to ensure bankruptcy becomes a viable route to providing relief.

“To support the administration’s efforts to overhaul the student loan system and ensure that bankruptcy relief is a viable option for borrowers in severe financial straits, it is critical that you issue and implement this updated guidance without delay,” Warren wrote in a Thursday letter

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September 12, 2022 by ATTORNEY

Warren Grills DOJ on Why It’s Still Trying to Crush Student Debtors in Bankruptcy Court

Just over a week after President Joe Biden unveiled a plan to cancel $10,000 in federal student loan debt for most borrowers and reform the income-driven repayment program, his administration on Thursday was rebuked once again for its ongoing effort to deny bankruptcy relief to some of the nation’s most hard-pressed student debtors.

“Those who continue to struggle with student debt are in need of updated undue hardship guidance.”

In a letter sent to Attorney General Merrick Garland, Sen. Elizabeth Warren (D-Mass.) asked about the status of the Department of Justice’s “work to update guidance on how it handles undue hardship claims by student borrowers in bankruptcy proceedings.”

“To support the administration’s efforts to overhaul the student loan system and ensure that bankruptcy relief is a viable option for borrowers in severe financial straits,” Warren wrote, “it is critical that you issue and implement this updated guidance without delay.”

Although Biden spent years as a senator siding with lenders and making it more difficult for Americans to reduce educational loan repayment obligations in court, he promised last year to “allow for student debt to be relieved in bankruptcy,” which would help give overwhelmed borrowers a fresh financial start.

Nevertheless,

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September 11, 2022 by ATTORNEY

Bankruptcy as MDL escape hatch? Not so fast, judge tells 3M in ‘surprise’ decision

The 3M logo is seen at its global headquarters in Maplewood, Minnesota, U.S. on March 4, 2020. Picture taken March 4, 2020. REUTERS/Nicholas Pfosi/File Photo

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(Reuters) – A federal bankruptcy judge in Indianapolis jolted 3M Co on Friday, ruling that scores of thousands of military veterans who claim hearing loss from 3M earplugs can continue to litigate their claims against 3M, despite the July 26 bankruptcy of several 3M subsidiaries. The company’s shares, as my colleague Dietrich Knauth reported, dropped 12% Friday and continued falling on Monday morning.

But the decision’s implications extend beyond 3M and the earplug multidistrict litigation. The ruling by U.S. Bankruptcy Judge Jeffrey Graham of Indianapolis should also be a warning to other MDL defendants: A subsidiary’s bankruptcy may not be the escape hatch you’re hoping for.

Graham’s ruling took even seasoned bankruptcy observers such as law professor Lindsey Simon of the University of Georgia School of Law by surprise, since courts frequently agree to extend litigation stays to the parents of bankruptcy subsidiaries. Reuters, for instance, has reported extensively on the so-called Texas two-step, in which solvent companies dump mass tort liability into a newly created

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September 10, 2022 by ATTORNEY

Knowing When to File for Bankruptcy

Knowing When to File for Bankruptcy

Life doesn’t always go according to plan. You may have needed to take on debt that outgrew your ability to pay it off each month. Now you’re wondering how to get your financial situation back in order.

Knowing When to File for Bankruptcy

Due – Due

Knowing when to file for bankruptcy is a valuable skill for individual consumers and small-business owners. Learn more about it and determine if it’s the best move for your financial needs.

What Is Bankruptcy?

Bankruptcy is a legal process begun by people who have too much debt. They must sign a federal petition that considers their outstanding financial obligations or debts before requesting that their creditors work with them to resolve their debt with any remaining assets.

What Are the Types of Bankruptcy?

People can accrue too much debt as individual consumers or business owners, so numerous types of bankruptcy exist to address those situations. These are the specific chapters outlined in the U.S. bankruptcy code that you may consider if you find yourself unable to repay debts.

Chapter 7: Individual Liquidation

Most people who need to claim straight bankruptcy over personal debt will file under Chapter 7. A federal court appoints a trustee to assist the individual with selling

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September 9, 2022 by ATTORNEY
September 2022
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