I’m not a lawyer nor do I play at being one but I read an interesting take on this situation to wit: whatever AJ’s financial worth is, it is probably nowhere near 1.5 billion. Let us say just for this example that AJ is worth 600mm. By liquidating his ‘empire’ the Sandy Hookers get 600mm and AJ’s debt is declared settled. He no longer owes the SHF group anything. Of course the leftys are against this because it leaves 900mm on the table and does not preclude AJ from starting over.
So the SandyHookers must decide if they want the settlement to continue to be paid off a little at a time for a couple of decades or take the cash now.
Paging J. G. Wentworth ...
Alex Jones originally filed a Chapter 11 Bankruptcy which requires a plan to be worked out between Alex Jones and his creditors for repayment of the debts.
When negotiations between Alex Jones and his creditors failed, the creditors then requested a liquidation of the assets, which then converted the case to Chapter 7 and a Trustee getting appointed.
After Bankruptcy Alex Jones won’t be left penniless. Each state has Bankruptcy Exemptions, here the exemptions in Texas where the cases are filed.
https://www.nolo.com/legal-encyclopedia/texas-bankruptcy-exemptions.html
Based on how Alex Jones has structured his assets he could be left with a decent income and assets.
Bankruptcy is not the end; it wipes out debts and allows a person to move on and start over debt free.