Peanut Corporation of America Awards Salmonella Victims Despite Bankruptcy
When Does Bankruptcy Protection Not Protect Against Lawsuits?
You may have heard recently that the Peanut Corporation of America allocated money to award injury claims to at least 677 people sickened with salmonella from eating peanuts.
The Peanut Corporation of America conducted a bankruptcy trial in Western Virginia after their peanuts were used in peanut butter, crackers, cookies and many other manufactured foods. A food borne illness of that magnitude and scope is indeed difficult to track; the 9 deaths proven to be a direct result of the peanut salmonella could only scrape the surface as more families come forth for their injury claims from the newly allocated 12.7 million dollar fund.
The Peanut Corporation was held exclusively responsible for those 677 sicknesses and 9 deaths, which originally drove them headfirst into a wide-scale bankruptcy, as did the criminal investigation that they narrowly avoided. Before their bankruptcy, they had 250 victims involved in injury claims lawsuits. Though injury claims are being awarded, the funds actually are not coming out of the Peanut Corporation of America’s pockets but their insurance. Their U.S. Bankruptcy Judge ordered 12.7 million from their insurance carrier, and their bankruptcy essentially keeps their pockets unscathed from the salmonella fiasco.
If you are filing a personal bankruptcy in the wake of a lawsuit, you are not alone. A huge percentage of people who file do so to avoid the blunting effects of lawsuits from a creditor, a bank levy, eviction and repossession. Bankruptcy however cannot protect against government claims like child support, civil violations like state property damage, or a pile of traffic violations.
In some instances, bankruptcy can protect against penalty for tax debt by buying the debtor some time with a repayment plan especially in the schedule repayment plans of Chapter 13 personal bankruptcy. Also keep in mind that filing for bankruptcy amid lawsuits won’t guarantee your protection on its own. Your bankruptcy needs strong representation to be approved by a Bankruptcy Judge: contact one of Legal Helpers’ attorneys by calling us toll-free at 1-800-260-1402. We provide sharp legal advice during your financial uncertainty. Call us today for a free initial consultation!
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