This isn’t really as good news as its being spun to be.
The effect of the dismissal of the bankruptcy is to end the automatic stay of creditor collection efforts that a bankruptcy filing creates. That means corporate creditors are now free to resort to collection remedies available under state law. Such as having the sheriff or equivalent seize and sell assets to satisfy outstanding judgments.
His individual bankruptcy got converted from a Chapter 11 to a Chapter 7. That means there is now a bankruptcy trustee appointed whose job it will be to seize and liquidate his personal assets, so that they can be used to pay unsecured creditors.
Of course, like everyone else, he will be entitled to assert that some of his assets are exempt from being seized—including some amount of equity in his home, cars, tools, retirement accounts, etc.
That’s what I’m thinking as well. He can’t hide his business from creditors. Seems like the Chapter 7 move simply opens everything up, within legal exemptions, to be seized and sold off or transferred to creditors. The court judgments aren’t exempted in Chapter 7, are they?
“That means there is now a bankruptcy trustee appointed...”
Yes, but he will just be a Crisis Trustee.
From what I understand there are secured creditors that will pretty much eat up the money from the liquidation before any of it goes to the Sandy Hook people. They will get next to zilch. But Jones agreed to make payments to them for 10 years if he was able to keep his company.
The plaintiffs will try to perfect the judgement anyway they can, which means endless court battles and expenses.