Conspiracy theorist Alex Jones has decided to convert his bankruptcy filing into a Chapter 7 liquidation, ending his attempt to settle massive legal judgments related to his false claims about the 2012 Sandy Hook Elementary School massacre. Most of his debts stem from $1.5 billion awarded in defamation lawsuits related to the Sandy Hook shooting. While Chapter 7 would not allow Jones to avoid paying the legal judgments, it provides a more streamlined process for selling his assets under the supervision of a court-appointed trustee.
Courts in Texas and Connecticut have ordered Jones to pay $1.5 billion to the families of victims in the Sandy Hook shooting. However, the judge overseeing Jones’ case ruled that most of the defamation verdicts cannot be discharged through bankruptcy as they resulted from “willful and malicious injury” caused by Jones. Despite this, Jones has accused the Sandy Hook families of trying to shut down his broadcasts with a fabricated debt, while a spokesman for the families declined to comment on the matter.
Jones had previously offered the Sandy Hook families a bankruptcy settlement that would have paid them $55 million, but they rejected the deal and presented their own proposal for liquidating Jones’ assets. U.S. Bankruptcy Judge Christopher Lopez will consider approving the families’ plan at a court hearing on June 14. Given that the bankruptcy is likely to result in the liquidation of Jones’ assets, he believes that a Chapter 7 liquidation would be a more cost-effective and seamless option compared to Chapter 11.
Jones had initially filed for Chapter 11 bankruptcy, which would have allowed him to retain control of his assets while working on a debt restructuring plan. However, the associated expenses on attorneys’ fees and court fees made the Chapter 11 process less beneficial given the circumstances. Jones expressed his preference for a Chapter 7 liquidation, which offers a simpler procedure for selling his assets and settling his debts related to the Sandy Hook defamation lawsuits. Despite Jones’ efforts to avoid paying the legal judgments, the bankruptcy process is expected to hold him accountable for his actions.
