Discharge Explained

After bankruptcy, as long as a person’s heart still beats, s/he can start over. Letting go of belongings may never be easy, but everyone lives with the consequences of their options and residues of their actions. Bankruptcy is not a tragedy. What is a tragedy would be to lie awake at night and wondering “what […]

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 […]

Harry & David Holdings, Inc. in Bankruptcy

Reuters in New York reported in “Harry & David in bankruptcy as gift sales fall” on March 28, 2011 that Harry & David Holdings Inc, the Oregon based mail-order gourmet food company, filed Chapter 11 bankruptcy in March 2011.  The weak economy has led consumers and businesses to cut spending on fruit baskets.  Harry & […]

Small Business Debtor in New York

In Chapter 11, a business may obtain exceptions from certain filings and procedures by being classified as a small business debtor. A debtor is a small business debtor when it passes a two-part test: •Debtor must be engaged in commercial or business activities other than primarily owning or operating real property with total non-contingent liquidated […]