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Residential Capital’s bankruptcy investigated

Posted on Monday, June 18th, 2012 at 8:14 pm    

An examiner has been appointed to investigate Residential Capital LLC’s bankruptcy filing under allegations that its pre-bankruptcy transactions with Ally, a company that may buy up ResCap’s assets, were improper.

A bankruptcy examiner, who is usually a bankruptcy lawyer, is typically appointed in cases where fraud, mismanagement, incompetence, and dishonesty are suspected.¬†Warren Buffett’s Berkshire Hathaway Inc. supported an investigation. Berkshire owns most of ResCap’s debt.

Reuters reports that unsecured creditors and ResCap’s lawyers are against the appointment of a examiner, claiming there is already an investigation underway with its creditor committee. They fear an additional investigation will slow down its reorganization plan.

If you are wondering if your business’s debts are eligible for discharge, contact the legal experts at the Law Office of Russell Van Beustring, P.C. at 713-973-6650.

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