How Chrysler Bankruptcy prevents Lawsuits
Owners of Chrysler vehicles are wondering, understandably, if the move to bankruptcy means trouble for them down the road.
Well, with car warranties, they don’t have to worry about. Said warranties will be covered, backed by the U.S. government. But there are other circumstances that may come up that are not covered.
Case in point: current Chrysler owners may not be able to sue Chrysler in the future because of product defects. People who currently have claims against Chrysler in court may have to settle for pennies on the dollar or less as the company restructures in bankruptcy. Worse, the “new” Chrysler that emerges from bankruptcy court may not have any liability at all to pay claims. That means that people who file claims after the bankruptcy process may get nothing — not even pennies on the dollar.
Our take? We reserve judgment, of course. Chrysler says that “A lot of these issues will be addressed in court.” Hmmm.
How Chrysler Bankruptcy prevents Lawsuits
Listed in: Chrysler, Chrysler Bankruptcy, Chrysler vehicles
Category: Auto News