bankruptcy laws

Purdue Pharma bankruptcy plan halted by SCOTUS

The U.S. Supreme Court on Thursday temporarily blocked Purdue Pharma’s plan to emerge from bankruptcy that shielded the founding Sackler families from liability in the nation’s opioid epidemic.

The application for a stay, brought by the U.S. Department of Justice, was presented to Justice Sonia Sotomayor and referred by her to the wider court, which agreed to hear argument on whether the nation’s bankruptcy laws allow a court to approve, as part of a plan of reorganization under Chapter 11, a release from litigation for third parties who are not themselves filing for bankruptcy.

A bankruptcy court judge had approved the reorganization plan for Purdue Pharma that reconstituted the company under another name while paying out billions of dollars to cities, states and Native American tribes afflicted by the opioid crisis — and insulated the descendants of the founding Sackler brothers from liability claims.

A federal judge in New York initially blocked the reorganization, however, ruling that bankruptcy laws do not allow liability shields to be given to parties that aren’t actually filing for bankruptcy.

An appellate court disagreed, reinstating the bankruptcy plan, and the DOJ asked the U.S. Supreme Court to intervene.

In a statement, Purdue Pharma

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I have $30K in credit card debt. I earn $70K a year. Should I file for bankruptcy?

STATEN ISLAND, N.Y. — Many people will find themselves in debt at some point in their lives.

And it doesn’t matter whether you lost your job or it’s medical bills that have piled up, when you don’t have the money to pay your debt, collectors will track you down. But when deciding whether to file for bankruptcy, there are a lot of factors to consider.

For this reason, we sought advice from Karra L. Kingston, a bankruptcy lawyer on Staten Island and in New Jersey, who has helped hundreds of people get out of debt.

Question: I have 30K in credit card debt. I earn 70K a year. Should I file for bankruptcy?

Kingston: “Filing for bankruptcy is a difficult decision to make, but it can be the most effective way to take control of your finances and make a fresh start. Bankruptcy laws were established to help people who are struggling with debt to find a way out of their financial difficulties.

When deciding whether to file for bankruptcy, you need to assess your financial situation, including whether you have enough money to repay your debts, and whether your monthly expenses are greater than your income. If you

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