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Retired Bankruptcy Judge Judith K. Fitzgerald Testifies Before the Senate Judiciary Subcommittee Meeting on Possible Abuses of the Bankruptcy System Through the Use of the ‘Texas Two-Step’

News February 10, 2022

A subcommittee of the Senate Judiciary Committee heard from bankruptcy experts and those affected directly by mass tort Chapter 11 cases about their concerns over the corporate machinations that allow some large corporations to avoid liability over asbestos exposure and how those concerns can be resolved through a range of possible abuse of the bankruptcy system resulting from the Texas Two Step.

Retired Bankruptcy Judge Judith K. Fitzgerald told the committee that a company can take advantage of Texas state laws to undergo a divisive merger that splits a subsidiary into two new entities, which in and of itself is not a problem.

To read the judge’s final written testimony, click here.

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Retired Bankruptcy Judge Judith K. Fitzgerald Testifies Before the Senate Judiciary Subcommittee Meeting on Possible Abuses of the Bankruptcy System Through the Use of the ‘Texas Two-Step’

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  • Insolvency/Creditor's Rights/Bankruptcy

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  • Honorable (Ret.) Judith K. Fitzgerald

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  • Arbitration, Mediation and Alternative Dispute Resolution
  • Commercial Litigation
  • Bankruptcy & Creditors’ Rights
  • Finance
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  • ERISA Litigation
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