Best Restructuring & Insolvency Lawyers in Astoria

1. About Restructuring & Insolvency Law in Astoria, United States

Restructuring and insolvency matters in the United States are primarily governed by federal law. The U.S. Bankruptcy Code provides the framework for how debts are addressed, assets are treated, and businesses or individuals may reorganize or discharge obligations. In Astoria, residents typically rely on federal bankruptcy courts located in the Eastern District of New York (EDNY).

The major chapters used in practice are Chapter 7 (liquidation), Chapter 11 (reorganization for businesses and some individuals), and Chapter 13 (personal reorganization with a repayment plan). Chapter 11 is commonly chosen by businesses seeking to continue operations while restructuring debts, while Chapter 7 and Chapter 13 address consumer and small business needs in different ways. Local practice in Queens often involves navigating EDNY rules and preparing detailed financial disclosures for the court and creditors.

Filings in Astoria generally proceed in the U.S. Bankruptcy Court for the Eastern District of New York, with hearings and proceedings held in courts serving Brooklyn and other EDNY venues. A bankruptcy attorney or solicitor can guide you through filing, automatic stays, creditor communications, and plan confirmation. For general guidance, see the U.S. Courts’ Bankruptcy Basics resources.

“Chapter 11 is designed for reorganization of businesses and individuals with substantial debts, while allowing the continued operation of the enterprise under a court approved plan.”

Guidance on how these processes work and where to start can be found at official government sources such as the U.S. Courts and the U.S. Trustee Program. These sources explain filing steps, creditor meetings, and the role of the bankruptcy judge in Astoria matters.

U.S. Courts - Bankruptcy Basics and U.S. Department of Justice - U.S. Trustee Program provide foundational information on bankruptcy processes, timelines, and the roles of courts and creditors.

2. Why You May Need a Lawyer

People in Astoria face concrete, situation-specific reasons to consult a Restructuring & Insolvency solicitor. Below are real-world scenarios that illustrate common needs.

• Small restaurant chain seeks to restructure debt while staying open. A family-owned restaurant in Astoria has mounting supplier claims, payroll obligations, and rent arrears after the pandemic. A Chapter 11 plan under Subchapter V can help continue operations while reorganizing debts with creditor cooperation.
• Tenant or landlord disputes after a bankruptcy filing. A major tenant in a commercial building files for bankruptcy. Legal counsel is needed to negotiate lease assumptions, modifications, or rejection, and to protect property interests during the stay.
• Consumer with significant medical and credit card debt. A resident with limited disposable income contemplates Chapter 7 liquidation or Chapter 13 repayment. An attorney helps determine eligibility and optimizes discharge and exemptions.
• Business owner facing tax obligations and payroll liabilities. A debt-owing business must decide between liquidating assets under Chapter 7 or reorganizing under Chapter 11 with an approved payment plan.
• Guarantor exposure on a business loan. A co-signer fears personal liability for a failed business. Counsel can assess options to negotiate with creditors or pursue a restructuring that protects personal assets.

3. Local Laws Overview

Astoria residents operate under a mix of federal bankruptcy law and New York state law provisions that influence insolvency outcomes. Here are 2-3 specific laws or regulations you should know by name, including notable changes.

• Small Business Reorganization Act of 2019 (SBRA) - Subchapter V. Created to simplify Chapter 11 for small businesses and reduce costs, it became effective February 2020. It allows streamlined plan confirmation and hopes to shorten timelines for small debtors. See official SBRA guidance for details on eligibility and process.
• United States Bankruptcy Code, Chapters 7, 11, and 13. Chapter 7 involves liquidation, Chapter 11 reorganization (often used by businesses and some individuals), and Chapter 13 provides a structured repayment plan for individuals with regular income. These chapters form the core framework for restructurings in Astoria.
• New York Debtor and Creditor Law (DCL). This state law governs issues such as fraudulent transfers and preferences in many insolvency contexts that intersect with bankruptcy cases in New York. The DCL sits alongside federal rules to shape remedies and protections in New York courts. For official NY statutes, see the New York Senate’s DCL page.

Useful note on rules and practice: The U.S. Bankruptcy Court for the Eastern District of New York applies its own Local Bankruptcy Rules in addition to the federal code. Local rules cover procedural specifics such as filing formats, notices, and deadlines for cases in the EDNY. See the EDNY Local Rules page for current requirements.

Eastern District of New York Local Bankruptcy Rules and New York Debtor and Creditor Law (DCL) provide jurisdiction-specific guidance.

“The CARES Act raised the Subchapter V eligibility cap to seven point five million dollars for small business debtors.”

4. Frequently Asked Questions

What is Chapter 11 bankruptcy?

Chapter 11 allows a business or individual to reorganize debts under court supervision while continuing operations. The court confirms a plan that restructures obligations with creditor approval.

How do I know if Chapter 7 or Chapter 13 is right for me in Astoria?

Chapter 7 generally liquidates non-exempt assets to satisfy creditors. Chapter 13 creates a repayment plan for individuals with steady income. An attorney can assess assets, income, and exemptions to choose appropriately.

When should I hire a Restructuring & Insolvency lawyer in Astoria?

Engage counsel as soon as you consider bankruptcy, especially if you’re negotiating with creditors or evaluating Chapter 11 for business continuity. Early advice improves strategy and timing.

Where do I file for bankruptcy if I live in Astoria?

Filings go to the U.S. Bankruptcy Court for the Eastern District of New York. The court handles cases for Queens and neighboring counties, with hearings conducted as scheduled by the judge.

Why is an automatic stay important in bankruptcy?

The automatic stay halts most collection actions, giving you breathing room to reorganize debts or discharge obligations. It prevents creditor lawsuits or evictions while the case progresses.

Can a non-resident file for bankruptcy in New York?

Yes, non-residents with debts in the United States can file in the appropriate federal bankruptcy court if they meet jurisdictional and filing requirements. An attorney can confirm eligibility based on residency and asset location.

Should I consider Subchapter V for a small business in Astoria?

Subchapter V offers a streamlined path for small businesses to reorganize debts under Chapter 11 with lower administrative costs. Eligibility depends on debt levels and business structure.

Do I need to attend the 341 meeting in person?

Most 341 meetings are held remotely or in court as scheduled. You must attend unless your attorney advises otherwise, and you should be prepared to answer questions under oath about your finances.

How much does a bankruptcy attorney cost in Astoria?

Costs vary by case type and complexity. Chapter 7 often involves lower upfront fees than Chapter 11. Ask for transparent fee structures and retainers during your first consultation.

How long does a typical bankruptcy proceeding take in the EDNY?

Timeline depends on chapter type and case complexity. Chapter 7 can complete in several months, while Chapter 11 plans may take several months to years to confirm and implement.

Do I need to disclose all my assets and debts?

Yes. Full disclosure is required, including assets, income, debts, and contracts. Incomplete disclosures can jeopardize the case and discharge rights.

What is the difference between liquidation and reorganization?

Liquidation under Chapter 7 ends debts by selling assets. Reorganization under Chapters 11 and 13 aims to restructure debts while continuing business or residence, with a court-approved plan.

Can creditors object to a bankruptcy plan in Astoria?

Yes. Creditors can oppose confirmation if the plan does not meet legal requirements or treats creditors unfairly. A judge reviews objections and modulates the plan accordingly.

Is Subchapter V the right option for my small business in Queens?

Subchapter V is designed to reduce costs and speed up confirmation for small debtors. A qualified attorney can determine eligibility and compare it with standard Chapter 11 options.

5. Additional Resources

The following official resources provide authoritative information on insolvency processes, court procedures, and agency guidance relevant to Astoria residents:

• U.S. Courts - Bankruptcy Basics: General information about bankruptcy, chapters, and process steps. https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
• U.S. Trustee Program: Oversees administration of bankruptcy cases and monitors for abuse or misfeasance. https://www.justice.gov/ust/bankruptcy-basics
• New York Debtor and Creditor Law (DCL): State law provisions on fraudulent transfers and preferences that interact with federal bankruptcy. https://www.nysenate.gov/legislation/laws/DCL

6. Next Steps

1. Define your goals and determine whether bankruptcy is the right tool for your situation. Consider both debt relief and business continuity needs. Timeframe: 1-2 weeks for initial assessment.
2. Identify potential Restructuring & Insolvency solicitors in Astoria and nearby areas. Check credentials, experience with EDNY cases, and client references. Timeframe: 1-3 weeks.
3. Gather financial documentation before your first consultation. Include tax returns, debt lists, asset inventories, contracts, and recent creditor communications. Timeframe: 1 week.
4. Schedule at least 2-3 consultations to compare strategies, timelines, and fee structures. Ask about flat fees for Chapter 7/Chapter 13 and hourly rates for Chapter 11 work. Timeframe: 2-4 weeks.
5. Discuss potential chapters (7, 11 including Subchapter V, or 13) and determine which aligns with your goals. Request a written plan of action from each attorney. Timeframe: 1-2 weeks after consultations.
6. Enter into a retention agreement with your chosen attorney. Confirm scope, fees, and anticipated milestones. Timeframe: 1 week.
7. Prepare for filing by coordinating with your attorney on schedules, disclosures, and creditor notices. Timeframe: 2-6 weeks depending on case complexity.