Ask a Local Attorney
Over 500,000 FREE Answers so far!

Free Legal Questions & Answers
(120 characters remaining)
No registration! No obligations! Completely FREE!

Bankruptcy Might Be Option for BP

Published on 07/12/2010 -

Although experts say unlikely, BP may be forced to file for bankruptcy if the number of liability lawsuits continue to rise.

BP has $260 billion in assets but may still be at risk because of tort and environmental liability resulting from the Deepwater Horizon disaster. A new cap is currently being placed on the broken well, which began spewing up to 100,000 barrels of oil a day into the Gulf of Mexico on April 20th.

The liability lawsuits could reach astronomical levels if currents bring the oil to East Coast shorelines, Cuba, or other Caribbean nations. Even though this circumstance may be unlikely, BP must still be considering this possibility and the repercussions that could result.

A memorandum from the Congressional Research Service has outlined the ways that a BP bankruptcy could affect liability compensation and cleanup efforts. Because the liabilities may be categorized as unsecured claims and liabilities left behind after the sale of assets, the memo concludes that the federal government would likely have to foot the cleanup bill in the event of bankruptcy.

The Justice Department has also mandated that BP give 30 day notice if they plan any substantial transfers of cash, which may precede a bankruptcy filing. The House has already passed a bill which attempts to limit BPs options in the case of bankruptcy.

More News

Several States Consider Passing Stronger Laws Against Youth Bullying

Published on 11/22/2013

By John Clark As bullying becomes increasingly dangerous for young people in the United States,... Read more

Huffing Case Triggers Review of DUI Laws in Illinois Courtroom

Published on 11/15/2013

By John Clark An Illinois DUI case involving a defendant who inhaled a computer cleaning produc... Read more

Popular Atlantic Club Casino Files for Bankruptcy Protection

Published on 11/08/2013

By John Clark Another Atlantic City casino is ... Read more

Supreme Court May Soon Rule on Legality of Warrantless Surveillance

Published on 11/01/2013

By John Clark The Supreme Court may soon rule on the legality of warrantless government surveil... Read more

Court Ruling Protects Surviving Spouses With Reverse Mortgages

Published on 10/25/2013

By John Clark A ruling last week in the United States District Court for the District of Columb... Read more

Drunk Driver Pleads Guilty to Crash that Killed Police Officer

Published on 10/17/2013

By John Clark A drunk driver in Pennsylvania pleaded guilty this week to causing a ... Read more

New California Immigration Law Limits Detentions to Serious Crimes

Published on 10/10/2013

By John Clark In a move that stirred a national controversy, the Los Angeles Police Department ... Read more

California Doctor Sued for Playing Prank on Unconscious Patient

Published on 10/03/2013

By John Clark A California doctor is facing a ... Read more

New York Task Force Aims to Modernize Internet Criminal Laws

Published on 09/30/2013

By John Clark As technology evolves, criminal laws tend to lag several years behind. The recent... Read more

Florida Police Allegedly Beat Female Driver During DUI Arrest

Published on 09/18/2013

By John Clark Florida police allegedly beat a woman during a DUI arrest, and her ... Read more