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This always confused me, if someone is wiped out in this way how are they able to survive in the aftermath? Isn't this effectively sentencing them to homelessne

by pen2l 4y ago

This always confused me, if someone is wiped out in this way how are they able to survive in the aftermath? Isn't this effectively sentencing them to homelessness forever, or is there a floor value in these wins that's always respected which accounts for some minimal cost amount of food+rent? And doesn't the responsibility to pay up remain for money made after the bankruptcy event? Or does declaring bankruptcy ensure a clean slate such that income from new ventures is safe from being confiscated?

tptacek 4y ago
I'm no expert but I think the general flow is that you wipe out all the debtor's assets, and then you arrange with the bankruptcy court to garnish their earnings until the matter is settled. That's for instance how it worked out with OJ.
Kesseki 4y ago
Yes, there is usually a floor value. Most states enumerate some types and amounts of property, and some amounts of income, that are exempt from civil judgment collection. It's the same thing for bankruptcy: there are exemptions that allow you to keep a certain amount. A bankruptcy discharge does usually ensure a clean slate for new ventures. However, some types of debt are "nondischargeable" and can survive a bankruptcy. That includes "intentional torts" like these instances of defamation. So, it's likely that these plaintiffs/creditors will be able to go after his new ventures.
- pen2l 4y ago
  I think if I was in law school and I was being told about these defamation laws and the potential for someone to be sued out of virtually their entire wealth, that would not have sat well with me. But here we are, and Alex Jones' antics prove to be an excellent rejoinder to those doubts. Still however, I wish the laws were more selective about which funds are ripe for being taken from. E.g., Alex Jones should have to pay up for money that was made from the source of the problem (the podcasts in this case), if he had, say, funds attained from a side-business of roofing, those should be untouched. And if he continues with his roofing business, maybe we shouldn't be taking all of those funds. Otherwise, I fear we are really just erecting disincentives for them to be good and upstanding contributors to society. As losing defendants of these battles are likely to be a perilous group, the issue probably deserves more careful handling. What are your thoughts?
  - Kesseki 4y ago
    That's an interesting point about the disincentive. I fear, though, that rules around this wouldn't be feasible to administer; it could open a whole new world of hiding assets, which is already pretty easy to do.
warbeforepeace 4y ago
Ask gawker.
anonAndOn 4y ago
>effectively sentencing them to homelessness forever Not if you have lived in Florida for the past 40 months[0], which is why many professional athletes change their residency to Florida and start the clock on the day they sign their professional contract. It appears Alex missed a trick here. [0]https://www.floridabankruptcynow.com/floridas-homestead-exemption-in-bankruptcy/ https://www.floridabankruptcynow.com/floridas-homestead-exem...

by pen2l 4y ago

tptacek 4y ago

I'm no expert but I think the general flow is that you wipe out all the debtor's assets, and then you arrange with the bankruptcy court to garnish their earnings until the matter is settled. That's for instance how it worked out with OJ.

Kesseki 4y ago

Yes, there is usually a floor value. Most states enumerate some types and amounts of property, and some amounts of income, that are exempt from civil judgment collection. It's the same thing for bankruptcy: there are exemptions that allow you to keep a certain amount. A bankruptcy discharge does usually ensure a clean slate for new ventures. However, some types of debt are "nondischargeable" and can survive a bankruptcy. That includes "intentional torts" like these instances of defamation. So, it's likely that these plaintiffs/creditors will be able to go after his new ventures.

pen2l 4y ago
I think if I was in law school and I was being told about these defamation laws and the potential for someone to be sued out of virtually their entire wealth, that would not have sat well with me. But here we are, and Alex Jones' antics prove to be an excellent rejoinder to those doubts. Still however, I wish the laws were more selective about which funds are ripe for being taken from. E.g., Alex Jones should have to pay up for money that was made from the source of the problem (the podcasts in this case), if he had, say, funds attained from a side-business of roofing, those should be untouched. And if he continues with his roofing business, maybe we shouldn't be taking all of those funds. Otherwise, I fear we are really just erecting disincentives for them to be good and upstanding contributors to society. As losing defendants of these battles are likely to be a perilous group, the issue probably deserves more careful handling. What are your thoughts?
- Kesseki 4y ago
  That's an interesting point about the disincentive. I fear, though, that rules around this wouldn't be feasible to administer; it could open a whole new world of hiding assets, which is already pretty easy to do.

warbeforepeace 4y ago

Ask gawker.

anonAndOn 4y ago

>effectively sentencing them to homelessness forever Not if you have lived in Florida for the past 40 months[0], which is why many professional athletes change their residency to Florida and start the clock on the day they sign their professional contract. It appears Alex missed a trick here. [0]https://www.floridabankruptcynow.com/floridas-homestead-exemption-in-bankruptcy/ https://www.floridabankruptcynow.com/floridas-homestead-exem...