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Posts tagged "Business & Commercial Bankruptcy"

Developer turns to bankruptcy to save Washington Heights project

Most residents of Rockland County and New York City view bankruptcy solely as a means for eliminating burdensome debts. However, a bankruptcy proceeding can often be used for other purposes, as a recent filing in the bankruptcy court in the Southern District of New York has demonstrated.

Rockland firm sued to prevent discharge of debt based on fraud

The United States Bankruptcy Code excludes several types of claims from the discharge provisions. Perhaps the most common exception is a debt obtained by fraud. The code states that a discharge in bankruptcy does not apply to a debt "for money, property [or] services . . . to the extent obtained by false pretenses, a false representation, or actual fraud. . . ." A Rockland steel fabricating company is now being sued by a Florida firm for allegedly making fraudulent statements that induced it to ship steel.

The treatment of executory contracts in bankruptcy

Most businesses in Rockland County attempt to avoid dealing with a business that has filed for bankruptcy under either Chapter 7 or Chapter 11. The chances of being paid for goods and services is obviously reduced if the other party is a bankruptcy petitioner. One of the most serious risks is to have a contract with a debtor rejected, even though the debtor is legally obligated to perform according to the contract. Such contracts are known as "executory contracts," and they receive special treatment under the Bankruptcy Code.

Hotel investors look to bankruptcy to save the business

Many New York businessmen look on bankruptcy as the end of a business, but some investors look to bankruptcy as the only path to resurrecting the business. A prime example of using bankruptcy to save a business instead of dismember it was recently provided by the TIME Nyack Hotel.

Buying a business out of bankruptcy can be profitable - and risky

Many business and commercial bankruptcies in Rockland County and elsewhere end up with the assets of the enterprise being sold to an investor who intends to reinvigorate the company and turn it into a profitable enterprise. The lure of purchasing a bankrupt company is the reduced price of the assets. On the other hand, rehabbing a bankrupt company can be very expensive and risky.

What is a 'voidable preference' in bankruptcy?

Let's imagine that you own and operate a business in Rockland County. You have a customer who owes you money for goods that were bought at various times during the last year. You learn that the customer is experiencing financial difficulties and may have trouble paying his debts. You take the obvious action and ask the customer for payment. The customer pays one-third of what he owes and promises more later. Instead of "more," however, the customer files a bankruptcy petition two weeks later. Bad news, but at least you were paid some of what the customer owes. You shrug and think things could be worse. You file your notice of claim for the balance owed to you and wait. But instead of receiving money from the bankruptcy trustee, you receive a federal court complaint seeking to recover the money paid to you before the bankruptcy. How can this be?

What should landlords know if a tenant files for Chapter 11?

The bankruptcy of a business tenant can be financially cataclysmic for a commercial landlord. If a commercial landlord in New York believes that a tenant is on the verge of filing a Chapter 11 business bankruptcy petition, understanding the provisions of the Bankruptcy Code that directly affect a landlord's rights can save a landlord many thousands of dollars.

Condo developer faces involuntary business bankruptcy

Real estate developers often use favorable markets to obtain financing to build and sell their projects. Unhappily, bull markets do not last forever, and when a market cools, developers and investors are often left wondering what happened -- and what to do next. Filing a lawsuit or a business bankruptcy petition is often the next step.

Bankruptcy for the small business owner

Many small business owners in Rockland County who are facing unexpected financial difficulties may wonder about the consequences of filing a bankruptcy petition. Perhaps the most important question is whether to seek dissolution under Chapter 7 or a reorganization under Chapter 11. The second question is what happens to the business and its assets in a Chapter 7 or Chapter 11 proceeding.

Toys 'R' Us suppliers weigh options after business bankruptcy

The decision by the leadership of Toys 'R' Us to close the company's stores in the United States is no longer fresh news. While adults in New York mourn the loss of a childhood icon, the company's suppliers are wondering if they will receive payments for toys sold to the retailer over the last few months.

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