Bankruptcy Woes Hit Lemon Law Consumers
In our last post we warned that rumors of car manufacturer insolvency should make lemon law claimants nervous. So much has happened since that post to confirm our concerns: Chrysler declared bankruptcy during the last week of April. Chrysler settlement checks issued to consumers before the bankruptcy filing have actually BOUNCED! Consumer groups have filed an objection in the Chrysler bankruptcy case seeking clarification on what will happen to lemon law claims. A consumer-rights protest is planned for Sacramento.
General Motors appears to be next. Many are predicting a General Motors bankruptcy filing on June 1, 2009. Rumors and reports of General Motors pulling back on lemon law settlements are swirling around the lemon law attorney community in California.
There is no way to predict what is going to happen next, as this is new territory for all of us - consumers, lawyers, judges, government officials and industry leaders. Right now, everyone is hoping that either the courts or Congress will make some effort to keep the rights and claims of consumers alive through the reorganization process. That would only make sense, as the blame for these financial problems lie at the feet of corporate leaders, not consumers.
