Many people in Rockland County understand that a Chapter 7 bankruptcy proceeding can be used to discharge, that is, write off, many different kinds of debts. Many people choose Chapter 7 to rid themselves of excessive consumer debt, such as credit card debts. In choosing Chapter 7, however, a person should be aware that a chapter 7 discharge order may not apply to several kinds of debts.
People who choose a Chapter 7 bankruptcy usually intend to obtain a complete discharge of all obligations. Those who choose Chapter 11 have some intention to repay at least some of their debts. Former New York Jets quarterback Michael Vick owed slightly more than $17 million when he filed his bankruptcy petition in 2008, but he chose Chapter 11 because he was reluctant to "stiff people who never stiffed [him]."
Most media coverage of corporate bankruptcies in New York and elsewhere focuses on the initiation of the proceeding, especially if the debtor is a major business enterprise. Few stories, however, provide a portrait of how the process ends. The termination of a Chapter 11 proceeding filed by a major department store chain provides an unusual look at how different parties fared in the bankruptcy court.
Virtually every inhabitant of Rockland County has received at least one offer of a retail credit card - that is, a credit card offered by a retailer instead of a bank. While the cards offer certain advantages, they now come with very high interest rates, some higher than 30 percent per annum. People who accept these offers often find themselves faced with a mountain of credit card debt after a few years of use.
Most residents of Rockland County, New York, view the filing of a bankruptcy petition as the voluntary act of someone who is buried in unmanageable debt. Occasionally, however, a person or company may be forced into a bankruptcy proceeding by a creditor who files a petition for involuntary bankruptcy. The impending involuntary bankruptcy of a retailer of upscale resort wear provides an excellent opportunity for exploring this relatively unfamiliar form of business bankruptcy.
Le Cirque in New York City was a world-famous restaurant, known for excellent food, impeccable service and, of course, high menu prices. When the restaurant filed a Chapter 11 bankruptcy petition in March 2017, most observers expected it to reorganize its finances and continue to operate. These same observers were shocked when the restaurant recently said that it was closing permanently. An October 4 filing in the New York bankruptcy court by Le Cirque's parent company has answered many questions about the decision to close the restaurant.