Alex Jones: The Bankruptcy Prequel

 While Alex Jones has created a lot of controversy through his decision to play three of his entities into voluntary bankruptcy, this was not his first brush with bankruptcy. In 2020, his ex-wife, Kelly R. Jones, initiated an involuntary bankruptcy petition against him. In re Jones, Case No. 20-10118 (Bankr. W. D. Texas). Ms. Jones filed the petition pro se, meaning that she did not have a lawyer. The case was dismissed after the bankruptcy court determined that Ms. Jones was not an unsecured creditor. Only unsecured creditors are entitled to bring involuntary bankruptcy petitions. The Bankruptcy Court determined that Ms. Jones's claim of $786,861 was secured by property worth at least $1,250,000. (Dkt. #92). Although Mr. Jones could have sought to recover his legal fees incurred in defending against the petition, he did not.

Next Phase of Alex Jones Bankruptcy Gambit Unfolds

When Alex Jones filed bankruptcy for three of his entities holding intellectual property and contract rights, it wasn't immediately clear how these filings would help him resolve his larger legal problems. Now it has unfolded that Mr. Jones is using the bankruptcy filings as a vehicle for removing state court actions against him to federal court.  On April 18, 2022, attorneys for the Debtors removed eight state court lawsuits to U.S. Bankruptcy Court: five in Texas and three in Connecticut. 

The Alex Jones Bankruptcy Gambit

 In a widely misunderstood move, Alex Jones and his legal team have put three of his entities that own intellectual property assets into SubChapter V of Chapter 11. The move, if successful, will protect the domain name, infowars.com, and will delay entry of judgments against Jones personally. The move involves apparent forum shopping and clever use of SubChapter V. The cases are jointly administered under Case. No. 22-60020 in the Southern District of Texas, Victoria Division.