Personal injury and wrongful death lawsuits against Chrysler and GM to be wiped out in face of bankruptcy

With Chrysler and GM being granted Chapter 11 bankruptcy, hundreds of personal injury and wrongful death claims against the corporation are being dropped – and not by the plaintiffs.The upshot of a government plan to bring GM and Chrysler LLC out of bankruptcy free of debt effectively wipes out the pending suits against them.

Before June 10th, the date on which the company emerged from bankruptcy, Chrysler sold 10 millions vehicles. And now the new Chrysler can’t be held legally responsible for any incidents involving those millions of cars and trucks.

GM is set to emerge from bankruptcy as early as July – and the same rule is likely to apply to the 30 million GM vehicles currently on the road.

The so-called “new Chrysler” is owned by Fiat, which will not be held responsible for liability claims made against Chrysler before the sale. The “old Chrysler” was internally insured. When its assets were vanquished, so too were any funds for legal backing.

Critics are challenging GM’s bankruptcy plan in court, claiming it would essentially deprive consumers of their legal right to pursue a product liability claim. The bankruptcy and sale to Fiat also means that none of the Chrysler vehicles sold before June 10th will ever be recalled for defects.

Experts also say that even consumers who have already won verdicts against Chrysler and GM will likely be unable to collect on their awards.

For a more in-depth look at these lost personal injury and wrongful death lawsuits, click here for the full story.

Fears | Nachawati is a Texas law firm handling personal injury and wrongful death claims. Contact us today for a free legal consultation.You can email us at or call our toll-free helpline at 1.866.705.7584.