If I’m Bringing a Claim Against PG&E, Will the Bankruptcy Filing Affect Me?

Thousands of people are bringing claims against PG&E, the utility company that sits at the center of blame for the Camp Fire of 2018. Unfortunately, PG&E is moving forward with claiming bankruptcy, which means that many people now have fears that they will never receive the compensation that is owed to them. What does it mean if PG&E decides to move forward with bankruptcy? Will your claim be tossed or are there still options for recovery?

Plans for Bankruptcy

Many individuals are stepping forward and urging lawmakers to not allow PG&E to go through bankruptcy because there are true fears that there could be less money for wildfire victims. Still, PG&E has plans to move forward with Chapter 11 bankruptcy because they are unable to pay the nearly $30 billion in damages that stemmed from the wildfire, many of which stemmed from property damage, personal injuries, and wrongful death when lives were lost. California law states that, if a utility company has caused a wildfire through its actions or equipment, they could be held entirely liable for damages.

It is believed that, if Chapter 11 bankruptcy goes through, wildfire victims will not be facing the damages that they would have expected if the company hadn’t filed. It was suggested that the legislature should instead allow PG&E to take out bonds that will cover all of these costs and pass some of the costs to ratepayers so that the company can avoid bankruptcy and many parties will receive the full compensation that is owed to them. This is something that has been done for utilities in the past when they were found liable for wildfires that did not occur on this same level.

The Discharge of Many Lawsuits 

If a company is facing debts and decides to move forward with bankruptcy, there is a good chance that many people’s lawsuits will actually be discharged and won’t be able to move forward. As a result, many people are left without homes, left to face injuries on their own, and left to pick up the pieces after losing a loved one. Of course, not all debts will be discharged in the event of bankruptcy. This is especially true if a company has acted especially negligently and caused extreme harm through their actions, as seen in the Camp Fire event.

Another matter to consider is that PG&E could likely be facing criminal penalties as well. If a company is facing criminal penalties for their actions, it is a law that they will not be able to relieve themselves from bankruptcy but will instead owe compensation to all of those who have suffered great harm at their hands. It is important to know your rights if you have been affected by the Camp Fire in some drastic way.

At Marlene Leiva Law Group, our experienced attorneys are helping many clients work toward results as they navigate the legal system concerning the Camp Fire lawsuits. If you have lost somebody you love or you have suffered from injuries at the hands of a negligent party, you could be owed damages after suffering one of the most difficult experiences of your life. Contact us to find out what we can do for you in your time of need at 415-459-7300.