A recent article published by Reuters told the story of a New York family that drove to a Toys 'R' Us store in Wallkill, New York, so that their children could enjoy the store's "play lab." Play labs are but one tactic the giant toy retailer is using in an effort to restructure its debt and emerge from its Chapter 11 bankruptcy proceeding. Unfortunately, the company's creditors may attempt to throw a wrench into these plans.
A Manhattan based provider of rooftop solar power is seeking the protection of the bankruptcy court two months after closing its operations. The company, Level Solar, had its headquarters in Manhattan and two installations on Long Island. It also had offices in Massachusetts and Rhode Island. The company filed its Chapter 11 petition on December 4.
A common question asked by New Yorkers who are contemplating bankruptcy is what happens to retirement savings. Can the trustee use retirement assets to pay creditors? Can creditors garnish funds in a retirement account? The answer depends upon the type of account in which funds have been accumulated and upon the law of the state in which the debtor lives. Whether a person chooses Chapter 7 or Chapter 13 generally makes little difference in protecting assets in a retirement account.
When a developer defaults on a construction loan or other financing, the lender typically commences a foreclosure action against the property. That tactic may not work, however, if ownership of the property is disputed. The recent filing of an involuntary bankruptcy petition in the Southern District of New York by Churchill Credit Holdings shows how involuntary Chapter 11 bankruptcy may be a better remedy for the creditor than a simple foreclosure.