In Rea v. Federated Investors, 627 F.3d 937 (3d Cir. 2010), the court made clear the differences between public and private employers’ abilities to consider bankruptcy as a factor in the hiring process. The case makes people think twice about bankruptcy because bankruptcy may hurt someone’s employment opportunities, not just the credit score. The Federal
NY Bankruptcy and Tax Blog, Information, and Resources
Bankruptcy and Intellectual Property
Intellectual property smacks with bankruptcy when a technology licensor has a debtor licensee who wants to assign the licensed rights to a licensor competitor. The Bankruptcy Code provides a debtor protection from spending to perform contract obligations with agreements are executory contracts. These agreements have material terms not yet performed by each party. For example,
Tax Discharge in New York Bankruptcy
Game News reported March 28, 2011, in “Trip Hawkins in serious shizzle over $20m tax bill” that the founder of Electronic Arts was rejected by a federal judge when he tried to use personal bankruptcy to cancel more than $20 million of federal and state tax obligations. The gaming giant is responsible for mega-blockbusters like
Use of Cash Collateral in Bankruptcy
In a Chapter 11 case involving Delco Oil. Marathon, the federal court of appeals for the 11th Circuit forced Marathon Petroleum to return almost $2 million in cash paid to it by chapter 11 debtor. The case is persuasive authority for New York vendors dealing with a debtor in Chapter 11. To avoid credit risk
Chapter 11 Debtor-in-Possession
In February 2011, crain’s new york business.com reported that the founder of New York’s H&H Bagels, filed bankruptcy. The founder was sentenced to 50 weekends in jail in 2010 for failing to pay over $500,000 in payroll taxes. H&H Bagels started in 1972 with its first store at Broadway and West 80th Street on Manhattan’s