Some people think that bankruptcy is too complicated or that the rich get some kind of special attention not available to the rest of us. However, a recent court case shows that everyone is equal under the bankruptcy code.
Hollywood deal making does not work in bankruptcy court
Recently, the federal 3rd Circuit Court of Appeals reviewed the bankruptcy case of Harvey Weinstein’s company, Spyglass Media (then called Lantern). In that case, the court found that the media company does not owe millions in compensation to Hollywood stars, even those that made hit movies for the media company.
The bankruptcy filing
We all remember the downfall of Weinstein after the sexual misconduct allegations and subsequent convictions. But, what many did not know is that this also lead to the bankruptcy filing of his media company that was valued at nearly $300 million. However, as part of this filing, millions of dollars were owed to the Hollywood elite, like Robert De Niro, Meryl Streep and Bill Murray, among many others.
For example, the producer of Silver Linings Playbook, Bruce Cohen, was owed $400,000 from the success of the film, but the federal bankruptcy judge found this debt did not have to be paid. And, barring any other review by the appeals court or the Supreme Court, this case is final.
The takeaway for private bankruptcy filers
For residents of Charles Town, West Virginia, looking into bankruptcy, this really does show that debts are generally, debts, which are usually dischargeable in bankruptcy. This is how bankruptcy can offer a fresh financial start for those struggling to pay their bills. Though, this is why an attorney is so important.