On June 21, US Bankruptcy Judge Christopher Lopez effectively concluded the two-year bankruptcy saga of Free Speech Systems (FSS), the parent company of Infowars, allowing Sandy Hook families to immediately pursue their state remedies. The decision [ended Alex Jones’s attempt](https://storage.courtlistener.com/recap/gov.uscourts.txsb.457706/gov.uscourts.txsb.457706.956.0_1.pdf) to stave off paying defamation judgments rendered against him for falsely claiming that the 2012 Sandy Hook Elementary School shooting was a hoax.
Within an hour of the ruling, attorney Mark Bankston, representing a group of parents from Texas, filed writs of attachment at the Travis County Courthouse seeking to seize all of FSS’s assets. The move, termed a “turnover order” in Texas, aims to help the plaintiffs recover their pending judgments against Jones and FSS. The decision by Judge Lopez has permitted the parents to [chase their claims in state court](https://www.lawandchaospod.com/p/alex-jones-bombs-out-of-bankruptcy), rather than continuing the elongated bankruptcy process.
At the same hearing, Alex Jones’s personal bankruptcy was also shifted from Chapter 11 to Chapter 7, signaling the start of a liquidation process aiming to sell off his remaining assets, much of which he attempted to shelter in family-controlled trusts. This transition raised concerns among involved parties, leading Subchapter V Trustee Melissa Haselden to file a [motion](https://storage.courtlistener.com/recap/gov.uscourts.txsb.457706/gov.uscourts.txsb.457706.949.0.pdf) clarifying control over FSS’s assets, although Judge Lopez declined to provide immediate answers.
While Bankston acted swiftly to secure the first dollar for the defamed families, Chapter 7 Trustee Charles Murray responded with an [emergency motion](https://storage.courtlistener.com/recap/gov.uscourts.txsb.459750/gov.uscourts.txsb.459750.720.0_1.pdf) aiming to stay the state collections process for 90 days. Murray argued that an orderly liquidation process would be more beneficial for all creditors, countering the chaotic asset seizure initiated by the writs of attachment.
The Travis County District Court has subsequently [signed](https://aboutblaw.com/beAc) the turnover order, directing FSS to surrender all nonexempt property, including cash and controlled assets, to the Travis County Sheriff’s Office. The order also prohibits the transfer of assets to insiders or affiliates, ensuring no further manipulations by Jones.
This legal tussle showcases the complex and high-stakes nature of corporate bankruptcies, particularly when intertwined with such emotionally charged defamation claims. Observe the evolving case details in the Jones Bankruptcy docket and the Free Speech Systems LLC docket.