Rhode Island Bankruptcy Proceedings

Bankruptcy proceedings can be a thorny situation at any level. Whether declaring a personal bankruptcy or filing for debt protection in order to save some business assets, this is a time that’s fraught with tension for anyone involved.

Here in Rhode Island, a situation has been developing over the past few years involving the bankruptcy of the entertainment company 38 Studios, a business that had received a state-backed loan for $75 million dollars shortly before releasing one title and closing its doors for good. This public case is giving Rhode Islanders a great look at how bankruptcy proceedings are handled in this state, as well as a taste for the negative ramifications of misrepresenting their financial status.

Recently, a conflict has been arising because of calls for subpoenas by some government officials for more public insight into this case. As this article published by The Providence Journal reports, Rhode Island House Speaker Nicholas Mattiello and chairwoman of the House Oversight Committee Karen MacBeth have been at odds over how to handle the case.

MacBeth, who was appointed by Mattiello, is looking to issue subpoenas that would require statements from many key players involved in the government loan deal, including former House Speaker Gordon D. Fox. Mattiello is pushing to have the subpoenas dropped and wait for court depositions surrounding the case to become unsealed, saying that subpoenas would be an extraordinary measure overstepping the bounds of the House of Representatives’ power.

Although governmental agencies aren’t typically caught in the midst of bankruptcy investigations, private organizations and individuals can be just as swept up by the system. Navigating the legal world of declaring bankruptcy without a licensed attorney by your side to explain your rights can be absolutely harrowing. Trust Rego & Rego Attorneys at Law to provide conscientious advice that will help you protect yourself and your assets as well as legally possible.