WSJcomBankruptcyBeat

Should bankruptcy be allowed to erase claims that may technically have arisen pre-bankruptcy but which a company’s creditors weren’t aware of at the time?

When Washington, D.C., restaurateur Richard Cervera filed for personal bankruptcy last year, he didn’t tell the court that he had gained a slice of ownership in several Capitol Hill restaurants just nine days prior.

Nor did he mention that he was negotiating a $200,000-a-year salary with the other owners who teamed up to buy the storied Hawk ‘n’ Dove, Molly Malone’s and six other restaurants from Mr. Cervera’s brother, Xavier.

It’s up to the courts to decide whether old or new GM is liable for faulty ignition-switch claims. But what do you think? From a legal, practical or ethical point of view, should it be?

TelexFree LLC has come under siege in recent weeks by federal prosecutors and securities regulators, which have alleged the company is behind a $1 billion-plus pyramid scheme.  Now, the beleaguered company faces the daunting challenge of notifying hundreds of thousands investors worldwide about its pending bankruptcy.

The U.S. Bankruptcy Court in Wilmington, Del., on Tuesday announced the forthcoming retirement of Judge Peter J. Walsh, effective Jan. 1. Calling Judge Walsh “irreplaceable,” the announcement nevertheless says that court officials are looking for a new judge to take his spot on the bench that has consistently presided over some of the biggest corporate restructurings in recent decades.