The families of Sandy Hook school shooting victims voted overwhelmingly in favor of a plan to wrap up Alex Jones’ bankruptcy proceedings by liquidating the right wing talk show host’s assets.
The families of Sandy Hook school shooting victims voted overwhelmingly in favor of a plan to wrap up Alex Jones’ bankruptcy proceedings by liquidating the right wing talk show host’s assets.
This article has the best breakdown I’ve ever read in a single source, but, from what I understand as a non-expert or even expert-adjacent, it doesn’t work that way.
If you put things in a living trust and name others as the beneficiary and then file for bankruptcy, you still own those trusts. So they take the assets.
If you put your assets in an irrevocable trust around the time that you file for bankruptcy and the recipient gives you something in return, the courts take the something you got in return. If you get nothing in return, then the auditors say “this smells like bullshit” and then the courts go, “yup, that’s definitely a coverup,” and then they reverse the trust and give you an extra punishment. If you’d established that trust well before filing for bankruptcy, then you didn’t have the money anyway, so nothing to take. But if the person who owns the trust is using the trust to financially support you, then the court will yoink the money before you spend it or they’ll spank you after you’ve spent it.