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Authorities are investigating whether General Motors hid an ignition switch defect when it filed for bankruptcy in 2009, the New York Times has reported. The Justice Department is investigating if the automaker committed bankruptcy fraud by not disclosing the ignition switch problem, which led to the recall of 1.6 million vehicles last month. It is also being investigated as to whether GM understated the defect to federal safety regulators. The ignition switch defect has been linked to 12 deaths and the company is facing multiple investigations into how it handled the recall.

GM has been hit with a lawsuit demanding it be held liable for allegedly concealing ignition problems before its 2009 bankruptcy. The lawsuit also claims GM was responsible for not reporting to the federal government any safety-related problems for cars made before its bankruptcy. This is just the latest in a string of lawsuits filed against the company since the recall was announced.

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If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

General Motors received a government bailout in 2009 of approximately $49.5 billion. After generating a reported $13 billion in profit since 2009, $7.6 billion was made in 2011; however General Motors paid no income taxes for 2011. The spokesman for GM disclosed that GM would not have to pay income taxes for “many more years.”
In 2009, GM received the government bailout after filing for bankruptcy and recording about $18 billion in losses. According to the U.S. Treasury Department, GM must record at least a $1 billion profit for at least 18 straight quarters before they will be expected to pay federal income taxes, again. GM is still paying a worldwide tax and state taxes. GM’s limited liability partner, the Chrysler Group, is taking advantage of the partnership and not paying federal income taxes, either.
Ford Motor Co. has also avoided paying federal income taxes due to profit losses of up to $30 billion in previous years. Auto manufacturers are not the only major corporations receiving huge tax breaks from the government. AIG and Citibank have also received government bailouts after major profit losses.
To read more on this story visit: http://www.torquenews.com/1081/despite-massive-profits-gm-pays-zero-federal-income-taxes
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.

Tag: General Motors

Bankruptcy Fraud Linked to GM’s Ignition Switch Recall

GM Relieved from Paying Federal Income Taxes for Years to Come