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Posts tagged "Business & Commercial Bankruptcy"

Understanding involuntary bankruptcy

One of the principal concerns of dealing with a person or corporation that is in financial difficulty is the possible mismanagement of the debtor business. Assets may be sold for less than fair market value or simply hidden from creditors. The debtor may decide to pay some creditors and not others. The bankruptcy code has a provision that creditors can use to protect themselves: involuntary bankruptcy.

David's Bridal files a Chapter 11 bankruptcy petition

Another large retailer has decided to seek protection from its creditors by filing a Chapter 11 bankruptcy petition. David's Bridal, the largest seller of wedding clothing and accessories in the United States, with stores in Yonkers, Long Island and 300 units elsewhere, filed a Chapter 11 petition on November 18. The company is hoping to obtain sufficient financing to enable it to emerge from bankruptcy with greatly reduced debt and enough cash to revive its operations.

Sears bankruptcy will have varied impacts on others

By now, the news of the bankruptcy filing by Sears is well known. Many Sears stores will close, and many employees will lose their jobs. But, what about firms that sell goods and services to Sears or rent space to Sears? Preliminary analyses of the retail market appear to show that some firms will benefit from the Sears bankruptcy and others will be harmed. The extent of both harmful and beneficial effects cannot yet be measured with fine accuracy, but preliminary studies of Sears' situations provide a few informative hints.

Retailing icon Sears on verge of bankruptcy

Another retailing icon appears to be edging toward a bankruptcy filing. Sears, one of the most recognized names in American retailing, is expected to file a business bankruptcy petition. The decline of Sears appears to be the result of a changing retail climate in the country and a serious of questionable management decisions.

Jurisdiction of U. S. bankruptcy courts

Rockland County businesses and individuals who are contemplating the filing of a petition in bankruptcy court rarely stop to wonder why Congress created a special court to handle bankruptcy cases. The creation of bankruptcy courts and the defining of their jurisdiction is a long and complicated history. A review of the last several decades of this history may help our readers understand why the bankruptcy court is different from other U.S. courts.

Seasons Kosher Supermarkets files Chapter 11 petition

Another grocery chain has decided to seek protection from creditors by filing a Chapter 11 petition. Seasons Kosher Supermarkets, based in Flushing, N.Y., filed its petition in the Eastern District of New York on September 16. An announcement by the company that accompanied the filing indicates that the chain is attempting to arrange interim financing that will allow it to remain in business during the Chapter 11 proceeding.

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.

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