Somewhere Between Heaven and Hell, Part 2: On Bankruptcy
Bankruptcy is a powerful weapon, but it is no panacea
In Part 1, we covered the gigantic gap between what potential damages are and what the defendants could possibly afford to pay, and that’s if we include every single MLS, REALTOR Association, brokerage and franchise company in the real estate industry. The fact that insurance is not going to cover a dime of any damage award or settlement makes bridging that gap more difficult.
If the plaintiff lawyers demand 30 cents on the dollar on a $900 billion judgment, and the entire industry cannot afford to pay that… then one option left open to all defendants and co-conspirators is to seek the protection of the bankruptcy court.
So let’s take a look at how that might interact with our situation. Thankfully, we have a bit of historical precedent we can look at to see how things might play out in our situation.
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