This blog has frequently considered the power given to companies who have filed a Chapter 11 bankruptcy petition to revoke real estate leases that still have many months left on the original term. Now a New York City landlord is attempting to reverse the process by using this provision of the code in an attempt to evict tenants from a rent-controlled apartment building to facilitate a sale of the building.
For many people in Rockland County, bankruptcy looks like an expert ski hill - once you start down, you have almost no way to stop. In the process, creditors will seize assets that provide security for a loan that will be discharged, and valuable assets, such as a car or a house, will be lost forever. The reality is a bit different. The careful use of debt reaffirmation can prevent the loss of some assets that have special value.
When a business files a petition in bankruptcy, it may have a number of employees who are owed payment for work performed prior to the filing of the petition. One of the most pressing questions for Rockland County individuals who work for firms entering into bankruptcy is the fate of their earned but unpaid wages, health care benefits and retirement plan contributions. The answer to this question depends in part on whether the employer has filed a Chapter 7 petition and intends to cease operations or whether the employer has filed a Chapter 11 petition and intends to remain in business.
Many factors can force a business into bankruptcy. The most common reasons for a business to seek bankruptcy protection is too many debts and insufficient revenue. Shoddy business practices can also be an underlying cause. A popular restaurant on the Hudson River, La Marina, recently filed a Chapter 11 bankruptcy petition amid a blizzard of unpaid claims and allegations that its manager was involved in a city hall scandal involving Mayor Bill DeBlasio.