Prison Health Company Bankruptcy Poses Hurdles for Inmates (1)

A distressed prison health-care company is forcing complex corporate bankruptcy machinations onto inmates, a group with limited access to legal information.

Corizon Health Inc. isn’t the first company to use the controversial bankruptcy strategy known as the Texas Two-Step to deal with its legal troubles. But it is the first to impose that maneuver on prisoners, a population that faces more hurdles than other types of litigants in reaching lawyers, experts, and court filings needed to pursue a case.

If successful, the case could embolden other troubled prison medical providers to also use the strategy to handle their financial problems. ...