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Embattled USA gymnastics seeks bankruptcy protection

On Behalf of | Dec 8, 2018 | Chapter 7 Bankruptcy

When people run into financial distress in Tennessee, it can be difficult for them to see a way out of their current situation. Fortunately, there are several options including consolidating debt and selling off assets to try and turn things around. In some cases, bankruptcy can be a valuable solution that can provide immediate relief. However, people should be aware that like other forms of debt relief, bankruptcy comes with its own set of challenges. 

In perhaps the most publicized case of bankruptcy in recent news, USA Gymnastics has declared that it is filing for bankruptcy in the wake of the troubling Larry Nassar case. Victims in the case that have readily pursued legal action toward the defendant were disappointed to learn that the filing halted all litigation. While some experts see the outcome as one that will allow victims and their families to receive compensation on a larger scale than previously was available, other professionals warned that the pending bankruptcy would do little to hide the truth. 

As the embattled organization struggles to recover from such a widely publicized and controversial case, organizational leaders claimed that the bankruptcy proceedings would not affect the organization’s ability to operate normally. They also said that they will continue to try and strengthen the organization as it recovers from the extreme damage caused by the Nassar case. With bankruptcy filings in order, the organization extended an invite to victims of any crime related to the organization to come forward within a designated period to collect compensation. 

If people are turning to bankruptcy as a solution for their debt relief, an attorney may be critical in educating them about the consequences and outcomes of their decision. An attorney can help organize financial documents to hopefully minimize the effect of bankruptcy on a person’s financial future. 

Source: The Wall Street Journal, “USA Gymnastics Bankruptcy Could Help Victims,” Katy Stech Ferek and Rebecca Davis O’Brien, Dec. 7, 2018


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