• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Law Offices of Stephen B. Kass, P.C.

New York Attorney Stephen B. Kass

(212) 843-0050

  • Home
  • About Us
    • Articles
    • Bankruptcy and Tax Information
    • Attorney Bios
  • Bankruptcy
    • Debt Negotiation
    • Tax Discharge in Bankruptcy
    • Consumer Bankruptcy
    • Chapter 11 Bankruptcy
    • Commercial Real Estate
    • Real Estate Finance
    • Real Estate Workouts
    • Real Estate Development
  • Tax Law
    • Tax Court Litigation
    • Installment Agreements
    • Financial and Tax Due Diligence
    • Offer In Compromise
    • Common Tax Problems and Solutions
    • Business Tax Problems
    • Like Kind Exchanges
    • Tax Discharges and Bankruptcy
  • Blog
  • Contact Us
    • Testimonials
    • In The Press
  • Home
  • About Us
    • Articles
    • Bankruptcy and Tax Information
    • Attorney Bios
  • Bankruptcy
    • Debt Negotiation
    • Tax Discharge in Bankruptcy
    • Consumer Bankruptcy
    • Chapter 11 Bankruptcy
    • Commercial Real Estate
    • Real Estate Finance
    • Real Estate Workouts
    • Real Estate Development
  • Tax Law
    • Tax Court Litigation
    • Installment Agreements
    • Financial and Tax Due Diligence
    • Offer In Compromise
    • Common Tax Problems and Solutions
    • Business Tax Problems
    • Like Kind Exchanges
    • Tax Discharges and Bankruptcy
  • Blog
  • Contact Us
    • Testimonials
    • In The Press
Call
Contact
Blog

June 21, 2012 By Stephen Kass

Business Bankruptcy

In late February 2012, bankrupt Peninsula Hospital in Queens, N.Y., closed down much of its 173-bed facility after NY state health officials ordered it to shut its lab, citing patient safety danger.  Since lab services were intertwined with the hospital’s operations, Peninsula Hospital transferred and discharged its inpatients and canceled surgeries, according to Crain’s New York. The hospital could not admit patients, but a spokesperson stated it was not closed. Non-clinical services, like radiology, was open, for instance.

The New York state health department listed 59 problems in the lab, many of which related to the hospital’s blood bank. For example, an individual with only two days of training worked alone in the blood bank, according to the Queens Chronicle. Blood platelets were stored at improper temperatures and the hospital did not maintain, calibrate, and monitor crucial instruments, according to WNYC. State health inspectors discovered three units of expired plasma in its blood-bank freezer, according to Crain’s New York.

Chapter 11 of the Bankruptcy Code generally referred to as “reorganization” bankruptcy usually involves a corporation or partnership.  A chapter 11 debtor in Walnut Creek, Sacramento, San Francisco, Fairfield proposes a reorganization plan to keep a business going and pay creditors over time.

The situation illustrated how bankruptcy can happen to anyone and any entity, even well-known hospitals.  In New York, chapter 11 is usually used to reorganize a business such as a hospital.

Individuals, such as those who own apartments in New York or small businesses, may seek relief in chapter 11 also.  Individuals who file chapter 11 must take a credit counseling course from an approved credit counseling agency, except when a US trustee determines there is an emergency event or there are not enough approved agencies to provide the counseling.

A chapter 11 case in New York starts with the filing of a petition with the bankruptcy court serving the area where the debtor resides. An individual usually resides in the location where the person expects to return to.  For example, a college student filing bankruptcy may live in another state during the school year, but expects to return to the state where his/her parents live so he/she resides in the state where his/her parents live, not where he/she is attending college.  For a business, a company may reside where its headquarters is located.  Where a person resides affects the bankruptcy court where a debtor files bankruptcy.

Some debtors may use residency to choose a court where there are fewer delays so the debtor can get an early discharge on debt or approval of a reorganization plan.  Some courts may have delays because of judge vacancies.  Vacancies create anxiety on court procedures and the number of cases on calendars.  The bankruptcy courts usually post its calendars on the Internet so people can prepare ahead of time what to expect when they go to a court hearing.  A debtor can find out the line number and order in which a case will be called.  The US trustee office may be in the same or close-by building as the bankruptcy court.

When filing bankruptcy, consider a law firm with offices in a court’s vicinity to understand the politics of the judges, trustees, and other parties.

Filed Under: Business Bankruptcy

Primary Sidebar

Contact Us

Testimonials

I highly recommend using Steve Kass as an attorney. I had a serious issue with the IRS involving real property, a company I built and sold, and multiple years of taxes which were unfairly and incorrectly assigned to me and had been hanging over my head because my efforts to negotiate...

Sean

Mr. Kass and his professional office staff helped me through every step of the way which without his expert guidance would not have been successful. Mr. Kass was able to a access my situation quickly and advise me. I highly highly recommend making an appointment with Mr. Kass

Vivian

I consider myself very lucky to have found Stephen B. Kass last year. We were drowning in credit card debt and were on the verge of filing bankruptcy. Mr. Kass was able to negotiate with all of our creditors and reduce the balances SIGNIFICANTLY. Within one year we are debt free

Alexandra

Stephen and legal staff provided superb, accurate, and detailed financial analysis. Stephen has an exquisite knowledge of financial planning and tax law, and was able to make tailored, individualized recommendations that have helped me tremedously with regard to long-term financial planning and resolution of tax issues. Office staff are skilled

John

I had a great experience with Stephen Kass. He took legally complicated case from another attorney and resolved it. Years later, when his assistance was needed, he responded right away, remembering every detail of the case. He is an expert in his field and great person to work with.

Victor

Read More Testimonials

Categories

  • Bankruptcy
  • Bankruptcy News
  • Business Bankruptcy
  • Chapter 11
  • Chapter 13
  • Chapter 7
  • Foreclosure
  • Tax Issues
  • Uncategorized

Footer

Recent Articlas

  • Small Business Reorganization ACT (Subchapter 5 under Chapter 11)
  • Presumption of Abuse in Chapter 7 Bankruptcy
  • Civil and Criminal Tax Fraud in NYC
  • Tax Consequences of Foreclosure
  • Discharging Income and Non-Income Tax Debt

For Tax & Financial Matters

Law Offices of Stephen B. Kass, P.C.

7 Penn Plaza, Suite 830
New York, NY, 10001
United States (US)

Phone: (212) 843-0050
Fax: (212) 202-7681

Copyright © 2023 | Law Offices Of Stephen B. Kass, P.C. | All Rights Reserved