Debtors operating sole proprietorships can encounter disadvantages in a chapter 7 New York business bankruptcy as compared to more common no-asset, low-income, non-business debtors in the same chapter. They both face chapter 7’s income thresholds, yet non-business debtors need not worry whether a trustee will put a stop to their incomes or sell the assets …
Two Reasons to Incorporate Before a Business Bankruptcy Read More »
It did not take long for the Internet to create new markets for consumers. It’s one of the Internet’s primary contributions to people’s lives. Like all new things, as it comes into contact with old laws, novel pitfalls emerge—like debt collectors on social media. Because people transact frequently via the World Wide Web, debtors sometimes …
The short answer is: We don’t know—according to a November 2016 article in New York Law Journal. In discussing the topic, the authors could not find any court cases in the Second Circuit addressing which party controls the attorney-client privilege in a New York bankruptcy. Before explaining why this is an issue, it’s necessary to …
Attorney-Client Privilege: Whose Is It in an Individual New York Bankruptcy? Read More »
Most New York bankruptcies are chapter 7 cases, and debtors don’t need to worry about property acquired after the case is filed. Section 541(a)(5) of the Bankruptcy Code governs “after-acquired” property, and limits it to three post-petition assets that can be roped into the bankruptcy estate if debtors acquire them within 180 days of filing. …
Post-Petition, ‘After-Acquired’ Property in Chapter 13 Read More »
I’ve written about how debtors can avoid liens in New York bankruptcy when they impair their exemptions, but trustees can avoid liens against debtors’ assets too, thanks to section 544 of the Bankruptcy Code. Of particular value to some debtors is the trustee’s power to avoid liens that creditors improperly recorded—also described as “unperfected.” It …
Unperfected Liens: Clear Advantage in Chapter 11, Tougher in Chapter 13 Read More »
Real estate in bankruptcy generally concerns debtors, creditors, the trustee, and maybe some tenants. But when that real estate is environmentally contaminated for some reason, then the number of participants swells to include nearby parties who might be affected and environmental regulators. Bankruptcies involving environmental laws are almost always long, complex, and business related. So …
Environmentally Contaminated Property in New York Bankruptcy Read More »
In a typical chapter 13 New York bankruptcy repayment plan, the debtor pays any prepetition mortgage arrearages in the regular plan payments to the trustee in full and any post-petition mortgage payments directly to the lender as though the bankruptcy had not occurred. Two separate payments might be cumbersome to debtors, so the question is …
What Is a Conduit Mortgage Provision and Is It Worthwhile? Read More »
A few weeks back, I wrote about how New York bankruptcy addresses publicly issued licenses, ranging from driver’s licenses to occupational licenses. Now I’ll discuss private licenses, which generally come up in bankruptcy cases with a business dimension. What are these and how do they work? Actually, people buy private licenses all the time without …
The trustee in a New York bankruptcy case is usually not the debtor’s ally. His or her purpose is mainly to administer the bankruptcy estate or ensure the debtor’s repayment plan goes according to plan. Trustees pursue preference payments, fraudulent conveyances, and other malfeasance committed by debtors. They frequently initiate adversary proceedings against debtors. In …
How Can a Debtor (or Creditor) Get a New Trustee? Read More »
In chapter 7 and chapter 11 New York bankruptcy, a bankruptcy estate is created and then either liquidated or managed for the creditors. In chapter 7, the estate is controlled by the trustee; in chapter 11, it’s managed by the debtor in possession or a trustee if appointed by the bankruptcy court. It’s easy to …
Capital Gains, Transfer Taxes, and the Bankruptcy Estate Read More »
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