tmoney144 t1_j6k8uu5 wrote on January 30, 2023 at 10:36 PM

Reply to comment by Aazadan in J&J’s Talc Bankruptcy Case Thrown Out by Appeals Court by L_Cranston_Shadow

If you honestly think "sovereign citizens are maybe on to something," I would encourage you to seek help before you hurt yourself or someone you care about.

Aazadan t1_j6k93k0 wrote on January 30, 2023 at 10:38 PM

Where did I say I thought that? I said they’re both crazy theories, to the point I’m not sure how you’re coming up with either being plausible.

tmoney144 t1_j6kbcdl wrote on January 30, 2023 at 10:52 PM

Do you know much about bankruptcy law? What J&J are trying to do is only really shitty because they tried to pull it like 2 months before trial after wasting a bunch of time in discovery. If they had pulled this when they first started getting sued, it probably would have been fine (maybe, after lookinginto it, I feel like they should have to put the whole companyin BK if that'sthe route they want to take). I think a big thing people are missing is that bankruptcy doesn't mean they don't have to pay. They created a shell company, but creating that company came with a promise to pay the liability once it works its way through the courts. They don't just get to skate on the claims by filing for bankruptcy. Here's a better discussion if you're actually interested: https://www.wbur.org/onpoint/2022/10/20/the-texas-two-step-a-new-bankruptcy-strategy-to-avoid-corporate-liability

Again, the 2 situations are not at all the same. What J&J tried had a real basis in law. Sovereign Citizens are lunatics.

PushinPickle t1_j6l7lqj wrote on January 31, 2023 at 2:45 AM

Having come across a few sovereign citizens, I’d wager all if not most are mentally ill.

Aazadan t1_j6mnq84 wrote on January 31, 2023 at 12:29 PM

Do I know much about bankruptcy law? Not really.

What I do know though, is companies use this strategy, as mentioned before, to escape liability and pay less. That means the victims of their fraud aren't properly compensated. Meaning, that tactic is a system designed to say corporate fraud needs to be protected.

There is no other reason to split off an entity to pay for it other than to limit assets/liability.