Since the bank kept the unit separate as its own legal identity, the bank itself will not have to file for Chapter 11 bankruptcy. While this would essentially strengthen the bank, experts say the public may not view the move positively and may even panic. That is why the move is being kept super-secret until the bank decides whether or not it will move forward.
No matter how much the bank does not want to discuss the option of bankruptcy, it is well known that the plaintiffs who are filing against the separate financial unit mean business. As much as $30 billion in faulty home loans can be attributed to the financial unit, a figure that could increase, if not double, in the upcoming years.
If you plan to file for Chapter 11 in Texas, it is advised that you contact the Malaise Law Firm to seek the advice and guidance of a San Antonio bankruptcy lawyer who can help you get through the process.