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Julie Sulpizio, the only surviving member of the family, was charged with murder and allegedly claimed she was God in an interview with authorities.
Its the first time the trustee has said publicly he plans to close down Infowars.
The approval means Jones personal assets can start being sold so the families can receive some portion of their payment.
The move from Chapter 11 bankruptcy to Chapter 7 liquidation would put Jones' ownership of his conspiracy program, Infowars, in peril.
WHAT'S HAPPENING
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Owen Shroyer pleaded guilty to illegally entering a restricted area on U.S. Capitol grounds last June.
These people hate our children, the conspiracy theorist, who falsely claimed the 2012 school shooting that killed 20 children was all a hoax, cried on his InfoWars show.
An attorney representing several families said the proposal falls woefully short of providing everything the families are entitled to under bankruptcy laws.
Jones was previously ordered to pay $1.5 billion to the Sandy Hook families for the lies he spread about them on his conspiracy program, Infowars.
Sandy Hook families won nearly the $1.5 billion in judgments against Jones last year in lawsuits over his lies that the 2012 school shooting didn't happen.
We literally own these streets right now, Shroyer said on an Infowars broadcast outside the U.S. Capitol the day of the 2021 attack.