It’s a question that came up in 2015, and the answer isn’t favorable to debtors in New York bankruptcy. When debtors file in chapter 13, creditors file proofs of claim because they usually expect to receive disbursements from the bankruptcy estate. In New York, it’s almost certain. The rub, though, is that sometimes creditors file …
Do Chapter 13 Debtors Have FDCPA Claims Against Creditors With Stale Debts? Read More »
A piece of big news covered by The New York Times provides one more reason not to trust student loan servicers to advise debtors of the best New York bankruptcy alternative for repaying their loans. The Consumer Financial Protection Bureau (CFPB) sued Navient, an offshoot of student loan giant Sallie Mae, for misleading debtors about …
CFPB Sues Student Loan Company Navient for ‘Cheating’ Borrowers Read More »
I recently discussed priority claims in New York bankruptcy in the context of the U.S. Supreme Court’s upcoming ruling on the future of “structured dismissals” in chapter 11. The case raises the issue of whether creditors can enter into an agreement, approved by the bankruptcy court, that repays some debtors ahead of others outside the …
Many New York City bankruptcy cases occur because renters can’t afford to pay their landlords, and rents only keep rising. In 2014, median rent as a share of median income in New York City rose to 39.5 percent, and one third of all tenants pay at least half their incomes in rent. Fortunately for tenants, …
New York City’s Soaring Rents Traced to 1994 Law Read More »
The phrase, “piercing the corporate veil,” is not a bankruptcy concept and does not appear in the Bankruptcy Code. Rather, it is a state-law equitable remedy for collapsing corporate entities with their principal shareholders to enable plaintiffs in civil actions to recover money from them—usually in fraud cases. Typically, the creditors sue the business entities …
Piercing the Corporate Veil in a New York Bankruptcy Read More »
The Bankruptcy Code doesn’t have a specific chapter addressing business bankruptcies. Debtors who own businesses must instead choose among options that are dispersed throughout the Bankruptcy Code based on their businesses’ and personal circumstances. One such circumstance that can influence the chapter debtor-owners choose is the fate of a lease for business property. For many …
Most New York bankruptcy debtors do not choose chapter 11, but their lives can be affected by chapter 11 bankruptcies filed by others, such as their employers. This is precisely what is happening in a case the U.S. Supreme Court is deciding, Czyzewski v. Jevic Holding Corp., which asks whether bankruptcy courts should allow “structured …
U.S. Supreme Court to Decide Future of ‘Structured Dismissals’ in Chapter 11 Read More »
The Consumer Financial Protection Bureau (CFPB) and the New York Attorney General filed a complaint against a debt collection agency based in Buffalo, N.Y., for deceiving millions of consumers. (Surprisingly, many debt collectors make Buffalo their home.) Two men operated three companies, Northern Resolution Group, Enhanced Acquisitions, and Delray Capital, and up to 60 related …
CFPB and N.Y. Attorney General Go After Vast Debt Collection Scheme Read More »
Creditors sometimes characterize debtors as “judgment proof,” but what does this mean and why does it matter for debtors considering New York bankruptcy? As an answer to the first question, “judgment proof” isn’t a legal term; it’s made up by lenders. It means that even though the creditor has a judgment against a debtor, the …
At the beginning of the year, I wrote about the merits of stored-value cards, and the role they can play in a New York bankruptcy. Stored-value cards are increasingly referred to as “prepaid cards” or “prepaid accounts.” They’re back in the news this month because the Consumer Financial Protection Bureau (CFPB) just issued new regulations …
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