GM on a course to bankruptcy? How to Protect Lemon Law Claims.

Is GM heading for bankruptcy? According to the New York Times, a plan being worked out by the administration, G.M. would file for prearranged bankruptcy. It would then use a sale authorized under Section 363 of the bankruptcy code to quickly sell off the desirable assets to a new company financed by the government. These good pieces might include Cadillac and Chevrolet, as well as assets the company needs to run the business.

Less desirable assets, brands like Hummer and underperforming factories, would be left in the old company. Proceeds from the sales, including stock in the new company, would be given to the old G.M., helping to settle claims.

1-800-MY-LEMON, PA and NJ’s Lemon Law Lawyers, urge the government to include all lemon law buybacks (both pre and post bankruptcy) as well as compensation to consumers for breach of warranty claims for all brands of gm cars, to be included with the new company. Failure to do so, may result in lengthy delays of payment, and or, a reduction of payments to consumers.

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