61 ms·

IANAL but I'm pretty sure that would be considered fraud.

• crooked-v 2y ago
  The "Texas two-step" has been used by plenty of companies and is structured around exactly those sort of shenanigans. https://www.investopedia.com/texas-two-step-bankruptcy-definition-5225888 https://www.investopedia.com/texas-two-step-bankruptcy-defin...
  • csinode 2y ago
    The "Texas two step" is also notably controversial and has been overturned by courts several times, including the most recent attempt: https://www.reuters.com/legal/jjs-ltl-units-bankruptcy-dismissed-by-us-appeals-court-filing-2023-01-30/ https://www.reuters.com/legal/jjs-ltl-units-bankruptcy-dismi...
    • maccard 2y ago
      If you need to take your case to an appeals court to be protected, it's not a protection for an everyday person.
  • lisper 2y ago
    Heh, TIL.
  • MereInterest 2y ago
    Though from the wikipedia article [0], it looks like it has only been used successfully three times (2017, 2019, and 2020). There's a fourth in-progress by Johnson&Johnson, where the summaries state that the bankruptcy has been twice dismissed by courts as being invalid. [0] https://en.wikipedia.org/wiki/Texas_two-step_bankruptcy https://en.wikipedia.org/wiki/Texas_two-step_bankruptcy