ABL Advisor's is reporting that new Chapter 11 bankruptcy filings increased by 79% in March 2023. The article can be found at https://www.abladvisor.com/news/36211/commercial-chapter-11-filings-rise-79-y-y-in-march
Jim Shenwick, Esq jshenwick@gmail.com 917-363-3391
We held individuals & businesses with too much debt!
Bed Bath & Beyond ("BBB") filed for Chapter 11 Bankruptcy Protection. Individuals & businesses who are owed money by BBB should organized their business records & file a Proof of Claim when notified by the Bankruptcy Court.
Also & importantly, If a vendor delivered goods to BBB in the 20 days before the Debtor filed bankruptcy, and those goods were delivered in the ordinary course of business, then you can get administrative claim status of the amount of the goods delivered. See 11 U.S.C. § 503(b)(9) and you should consult with a bankruptcy attorney as soon as possible.
Jim Shenwick, Esq. 917 363 3391 jshenwick@gmail.com
We held individuals & businesses with too much debt!
PLEASE NOTE THAT EFFECTIVE IMMEDIATELY, PLEASE USE 917 363 3391 TO CONTACT JIM SHENWICK, ESQ.
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The New York Post recently had an article about a New York bankruptcy trustee who has ordered dozens of former sales reps at Worth Collection (an upscale, New York-based women’s apparel label that filed for chapter 7 bankruptcy three years ago) to return tens of thousands of dollars in commissions they earned shortly before the company’s bankruptcy filing. The article can be found at https://nypost.com/2023/03/30/bankrupt-nyc-fashion-labels-sales-reps-ordered-to-return-commissions/?utm_source=gmail&utm_campaign=android_nyp
The article states that stylists who worked as independent contractors for Worth Collection (which catered to professional women at trunk shows that were typically held at the stylists’ homes or showrooms) were ordered to repay the earned commissions by a US Bankruptcy Trustee.
In the way of background, when a company files for chapter 7 bankruptcy protection, a bankruptcy trustee is appointed to close the business, liquidate the business’s assets, and distribute those monies to creditors.
The bankruptcy trustee will review the company's financial statements, bank statements, check registers, and tax returns to determine if preferential payments or fraudulent conveyances were made. If those payments occurred, then the bankruptcy trustee will commence lawsuit(s) (called Adversary Proceedings in bankruptcy parlance) to recover those monies.
While not actually stated in the article, it is this author’s opinion that the bankruptcy trustee’s action against the stylists was for preferential payments, i.e., payments made to the stylists on account of antecedent debts (old debts) within 90 days of Worth Collection’s chapter 7 bankruptcy filing.
Additionally, unless the bankruptcy filing was an involuntary bankruptcy filing, the company could have delayed their bankruptcy filing by 90 days, to have prevented the bankruptcy trustee's preference actions against the stylists.
For this reason, whenever we advise a company to consider filing for chapter 7 bankruptcy, we discuss preference issues with management and the owners, review bank statements, and check registers for preference issues.
Individuals or businesses with preferences can contact Jim Shenwick, Esq., for a consultation.
Jim Shenwick, Esq. 917 363 3391 jshenwick@gmail.com
We help individuals and companies with too much debt!
Bankrate has a very interesting and informative article about whether a small business can get a small business loan after bankruptcy?
The article states that getting a small business loan after going through bankruptcy is possible, but it can be a challenge. At Shenwick & Associates we have found that individuals can obtain credit 6 months to 1.5 years after filing for personal bankruptcy and approximately 2 years for businesses. The article can be found at https://www.bankrate.com/loans/small-business/business-loan-after-bankruptcy/
Jim Shenwick, Esq 917 363 3391 jshenwick@gmail.com
We help individuals and businesses with too much debt!
Yahoo Finance is reporting that
A Fox 13 Report states that "A growing number of Americans, still reeling from the financial strain of the COVID-19 pandemic, are no longer benefiting from government relief efforts and are increasingly choosing bankruptcy to deal with unmanageable debt, according to a recent American Bankruptcy Institute (ABI)"
The article can be found at https://www.q13fox.com/news/more-americans-choose-bankruptcy-debt-report
At Shenwick & Associates we held individuals & companies that have too much debt!
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