PlentyofFish CEO blasts Texas Attorney General for Blocking Sale of Bankrupt True.com

Texas Attorney General Greg Abbott objected to the proposed sale of True.com, saying the sale would violate a privacy pledge the site made to its 43 million members when they signed up for the dating service. The founder of the online dating site PlentyofFish made an offer to purchase the bankrupt Plano-based online dating site True.com for $700,000. However, after the attorney general said the transfer of all of the personal data to another company would create privacy risks and violate True.com’s privacy policy, the founder of PlentyofFish pulled his offer and, reportedly, lashed out at the attorney general of Texas for torpedoing his company’s plans to purchase True.com.

True Beginnings, the company that owns the database and website True.com, filed for Chapter 11 bankruptcy protection more than a year ago and is in the process of selling its assets. Bankruptcy is a legal action for debtors to deal with insolvency. Title 11 of the United States Code establishes and sets the guidelines for bankruptcy procedure. The common belief that a business is lost after filing Chapter 11 is false. The difference between filing Chapter 11 and Chapter 7 is in the way the bankrupt company solves the problem of debt. With Chapter 7 a company liquefies its assets and pays off debt. With Chapter 11 the company keeps assets and reorganizes the debt in a more manageable way.

At Bailey & Galyen, we represent individuals and commercial clients in bankruptcy proceedings throughout Texas. We assist debtors who are seeking to completely discharge their debts or to restructure their debt through reorganization and repayment plans. If you are facing a bankruptcy, schedule a time to meet with an attorney at Bailey & Galyen to discuss your options. To set up an appointment, contact us by e-mail or call 1-800-208-3104. We will take your call 24 hours a day, seven days a week.