A Chapter 11 case in New York starts with the filing of a petition with the bankruptcy court serving the area where the debtor lives. Each court has its own personality because the judges and trustees are different. Judge vacancies may create anxiety on court procedures and the number of cases on calendars with creditors,
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
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
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
Westlaw News & Insights reported on February 17, 2011, that Starr & Company LLC and Starr Investment Advisors LLC filed for Chapter 7 bankruptcy in the cases Re Starr Investment Advisors, LLC, U.S. Bankruptcy Court for the Southern District of New York, No. 11-10639 and Re: Starr & Company, LLC, in the same court, No.