Taxpayers Keep Paying On GM and Chrysler Bankruptcy
The bailouts of GM and Chrysler make most taxpayers see red. Well, get ready to be enraged. We’re all paying the legal and consulting fees as well to the tune of well over $100 million.
The collapse of the Big Three American automakers into the Big One was part of an all around economic plunge. That being said, the move to put both GM and Chrysler into bankruptcy was the right one as it shed a lot of debt. Providing billions upon billions to keep these two dinosaurs rolling probably isn’t as there is not indication they will make it in the long run, particularly when it comes to Chrysler.
Experts Your Questions Now.
Most taxpayers now view this mess as being over. Both companies are out of bankruptcy and functioning on their own, right? Well, yes and no. The remnants of there past sins are still sitting in the bankruptcy courts. The massive legal boondoggle of dealing with those from the first day of the filings for each company to the present day have spawned a massive niche of jobs growth – lawyers and consultants!
The toll to date for legal fees and consulting fees on the GM and Chrysler bankruptcies has topped $120 million dollars. Yes, you read that correctly. Guess who is paying? Yes, you and me through the government. Even better, it has become apparent that the legal shenanigans are going to continue for another few years at least. Guess who will be paying for THAT. Yep, that would be you and me again.
From A Bankruptcy Lawyer Now.
In truth, a couple hundred million dollars isn’t much compared to the billions given to these two inept companies to keep them afloat. Still, it is rather amazing that such fees could be run up in such a short time. We say this even though we are a bankruptcy lawyer site!