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In the wake of a significant defamation lawsuit, Ammon Bundy, a far-right activist, has lost his home, fled to Utah, and now declared bankruptcy as revealed in recent court filings.
Bundy shared his decision via a live YouTube video titled “Gone Bankrupt!,” asserting the only debt he owes is $53 million to St. Luke’s Health System. This debt stems from a July 2023 Ada County jury verdict requiring Bundy, Diego Rodriguez, and their entities to pay $52.5 million for defaming St. Luke’s and its staff.
“All my life I’ve been financially prudent,” Bundy stated. “Filing for bankruptcy goes against my nature, but I have no alternative given the circumstances.”
The defamation case followed protests led by Bundy and Rodriguez at St. Luke’s hospitals in March 2022 concerning a child welfare dispute involving Rodriguez’s grandchild. The court found the defendants had spread falsehoods about the hospital and its personnel online.
Bundy, in his YouTube video, positioned himself alongside political figures like Donald Trump, Rudy Giuliani, and Alex Jones, suggesting they all face financial ruin due to political motives.
‘The Lord wants me to go bankrupt’
Bundy began contemplating bankruptcy after his arrest at his son’s school event, an arrest he described as distressing and poorly timed.
“The idea of bankruptcy struck me while in jail and brought me a sense of peace,” Bundy remarked, suggesting his decision is an act of obedience to divine will.
He expressed hope that a bankruptcy judge would absolve his debt, citing the U.S. Courts website, which notes that discharged debts do not need to be paid back.
“I’m convinced the Lord desires this bankruptcy and wants the court to correct this situation,” Bundy said.
Bundy could face significant legal hurdles
The path to debt discharge through bankruptcy is fraught with challenges, especially for liabilities resulting from “willful and malicious injury,” as federal law stipulates.
Bruce Markell, a bankruptcy law professor at Northwestern Pritzker School of Law and a former federal bankruptcy judge, referenced the case of Alex Jones, who couldn’t discharge most of his defamation-related debts through bankruptcy.
“Many are surprised when bankruptcy doesn’t work in their favor,” Markell said. “Bundy might have misjudged his strategy, or he’s buying time until the court dismisses his case.”
In his Chapter 7 filing, Bundy listed a new Utah address and identified his financial counselor as “Stand Sure Credit Counseling a/k/a Biblical Financial Concepts” from Alabama.
The conflict over Bundy’s financial status persists, with St. Luke’s accusing him of concealing assets. Bundy’s filing indicates a monthly income of $11,100 and assets worth $1,573,300, mainly in real estate. He also reported gifting $24,000 to his church between 2022 and 2024.
Bundy admitted selling his $1.4 million house to a friend to prevent losing it to St. Luke’s executives.
Erik Stidham, representing St. Luke’s, suggested discrepancies in Bundy’s bankruptcy claim, stating the process may help uncover hidden assets.
“Evidence shows Mr. Bundy was a multi-millionaire at the verdict time,” Stidham said. “His public portrayal as financially constrained doesn’t match reality.”
Markell noted that hiding assets during bankruptcy proceedings constitutes a felony crime.
“Submitting false statements or omitting information under penalty of perjury can lead to criminal prosecution,” Markell warned.
Stidham asserted that St. Luke’s will leverage the bankruptcy process to address Bundy’s claims about his wealth and resist discharging a judgment rooted in falsehoods and intentional harm.
Source
www.yahoo.com