BP Claims and Bankruptcy

In these times when business is tough for lots of companies along the gulf coast its important to know how a BP claim for past and future revenues are looked at in bankruptcy courts in the 4 gulf states effected by the oil spill. In bankruptcy court for a chapter 7 or a chapter 13 bankruptcy the BP claim is just another asset for the debtor filing bankruptcy. Bob Lawless posted a great write up of the controversy of the BP claim in bankruptcy in this article here.

BP Oil Spil Claim and Bankruptcy

The ironic part is that the gulf states are opted out of a federal bankruptcy code so the exemptions that the states allows can be kept especially for Florida I think that is a great thing in bankruptcy but because we are using the state exemptions we will also be stuck with the wording for the BP claims that it will be considered just another asset the creditors can go after and it cannot be protected unless as Bob lawless writes in his article changes are made in congress to change law on this point. I does look like some counties recently in Alabama has made it an exemption and people there can take it out of a bankruptcy filing.

Bankruptcy first then file your BP claim

Now remember we are only talking about a BP claim already filed, if you where to wait with filing your BP claim until after you file for bankruptcy it would be in the clear as at the time of your bankruptcy no claim has been filed. If you are in the situation of having to file bankruptcy and you have already received money from BP, all future money owed by BP would be money the credits can go after.