Best Restructuring & Insolvency Lawyers in Flushing

About Restructuring & Insolvency Law in Flushing, United States

Restructuring and insolvency law covers the legal processes used when individuals or businesses cannot meet their debts. In Flushing, which is part of Queens County in New York City, insolvency matters sit at the intersection of federal bankruptcy law and New York state and local rules. Federal law - primarily the Bankruptcy Code - governs filings like Chapter 7, Chapter 11 and Chapter 13. State courts and statutes govern alternatives such as receiverships, assignments for the benefit of creditors, and enforcement of security interests under New York law. Local practice in Flushing is influenced by courthouse procedures, local creditors and lenders, and the area-specific needs of small businesses, property owners and consumers in the Queens business community.

Why You May Need a Lawyer

Restructuring and insolvency matters involve complex procedures, tight deadlines and significant financial consequences. You may need a lawyer in the following common situations:

- A creditor has sued you or started a foreclosure or eviction proceeding.

- Your business is running out of cash and you need a negotiation strategy with lenders, landlords, vendors or taxing authorities.

- You are considering or facing a bankruptcy filing, and need advice on whether to file Chapter 7, Chapter 11 or Chapter 13, or whether to pursue non-bankruptcy options.

- You are a creditor trying to protect or enforce secured rights, collect a judgment, or participate in a bankruptcy case.

- You are negotiating the sale of a distressed business or its assets, including sales under Section 363 of the Bankruptcy Code or state-law assignments.

- You suspect a transaction by a debtor may be a fraudulent conveyance or preferential transfer and you want to understand potential remedies or defenses.

- You need help with tax arrears, payroll obligations, or regulatory compliance that could affect restructuring options.

- You are a small business owner considering Subchapter V of Chapter 11 or a consumer who needs help addressing medical, credit card or student loan debt.

Local Laws Overview

Key aspects of law and practice that are particularly relevant in Flushing include:

- Federal Bankruptcy Law - The U.S. Bankruptcy Code governs consumer and business bankruptcies. Common chapters used by Flushing residents and businesses are Chapter 7 (liquidation for individuals and businesses), Chapter 11 (business reorganization), Subchapter V for small business reorganizations, and Chapter 13 (individual debt adjustment).

- Federal Court and Trustee Oversight - Bankruptcy cases for Flushing residents and businesses are typically filed in the U.S. Bankruptcy Court for the Eastern District of New York. The U.S. Trustee oversees administration of cases and appointed trustees.

- New York State Remedies - New York state courts handle receiverships, foreclosure actions, certain contested creditor remedies and state law creditor-debtor disputes. New York also recognizes assignments for the benefit of creditors - a non-bankruptcy alternative for liquidating assets.

- Secured Transactions - Article 9 of the Uniform Commercial Code, as adopted in New York, governs secured transactions and sale of collateral. Proper filing and perfection of security interests are critical in determining priority among creditors.

- Fraudulent Conveyances and Preferences - New York law and federal bankruptcy law provide tools for attacking transfers made to defeat, delay or defraud creditors. Trustees or creditors may seek to unwind such transfers.

- Landlord-Tenant and Commercial Lease Rules - Commercial lease enforcement, repossession and eviction involve state and city rules. Landlords and tenants in Flushing should account for local procedural rules and possible municipal relief programs.

- Tax and Wage Claims - State and federal tax liens and unpaid payroll taxes have priority in many insolvency contexts. Resolving these claims is often essential to a successful restructuring.

- Local Practice Considerations - Workouts and restructurings in Flushing often involve negotiations with local banks, community lenders, and municipal agencies. Counsel familiar with local judges, trustees and practitioners can help navigate procedural nuances.

Frequently Asked Questions

What is the difference between insolvency, bankruptcy and restructuring?

Insolvency is a financial condition - when liabilities exceed assets or when a person or company cannot pay debts as they come due. Bankruptcy is a formal, statutory process under federal law that provides remedies like liquidation or court-supervised reorganization. Restructuring is a broader term for reorganizing debt and operations - it can be informal through negotiated agreements with creditors or formal through bankruptcy.

Can a business or individual in Flushing file for Chapter 11?

Yes. Businesses and some individuals may file Chapter 11 in federal bankruptcy court. Chapter 11 enables reorganization of debts while the debtor continues operations. Small businesses may be able to use Subchapter V, which streamlines Chapter 11 cases and reduces administrative cost and complexity.

What is Subchapter V and could it apply to my small business?

Subchapter V is a streamlined Chapter 11 option for qualifying small business debtors with debts under a statutory limit. It offers faster procedures, reduced costs and an emphasis on consensual plans. Whether it applies depends on your business type and total debt amount. A local bankruptcy attorney can determine eligibility and evaluate whether Subchapter V fits your situation.

What is an assignment for the benefit of creditors?

An assignment for the benefit of creditors - often called ABC - is a state-law alternative to bankruptcy where a debtor transfers assets to an assignee who sells assets and distributes proceeds to creditors. ABCs can be faster and less expensive than bankruptcy, but they do not have the automatic stay protection that bankruptcy provides and may result in different creditor priorities.

What protections does the automatic stay provide?

The automatic stay, triggered when a bankruptcy case is filed, immediately halts most collection actions against the debtor and the debtor's property. It stops lawsuits, foreclosures, repossessions and most creditor communications, giving the debtor breathing room while the case proceeds. Certain parties can seek relief from the stay from the bankruptcy court in order to continue enforcement actions.

Will I lose my house if I file bankruptcy in Flushing?

Filing bankruptcy does not automatically mean losing your home. Exemptions, the type of bankruptcy, and the value and equity in your home all matter. In Chapter 13, you may be able to keep and repay mortgage arrears through a repayment plan. In Chapter 7, a trustee could liquidate non-exempt equity, but many debtors retain their homes using exemptions. Local counsel can explain New York exemption rules and realistic outcomes for your specific case.

How long does a restructuring or bankruptcy case usually take?

Times vary widely. A consumer Chapter 7 often concludes in a few months. Chapter 13 plans usually last three to five years. Chapter 11 reorganizations can take many months to several years depending on complexity, creditor negotiations and court schedules. Non-bankruptcy workouts or an ABC may resolve faster but depend on the parties involved.

Can the trustee or a creditor challenge transfers I made before filing bankruptcy?

Yes. Trustees and creditors can seek to avoid certain transfers as preferential or fraudulent if they occurred within statutory lookback periods or were made to hinder creditors. The exact rules depend on timing, intent, and the nature of the transfer. Good records and prompt legal advice can help evaluate exposure and possible defenses.

Do I need a local Flushing or Queens attorney instead of an out-of-state lawyer?

Local counsel bring important benefits - familiarity with Eastern District of New York bankruptcy practices, local judges and clerks, state court procedures for receiverships and foreclosures, and relationships with local trustees and professionals. Out-of-state lawyers can be involved but often must work with local counsel admitted in the relevant courts.

How much will it cost to hire a restructuring or insolvency lawyer?

Costs vary by case type and complexity. Consumer bankruptcies may be handled on a fixed-fee basis for simple Chapter 7 matters. Business restructurings and Chapter 11 cases often involve hourly billing, retainers, and additional fees for professionals like accountants and financial advisors. Many lawyers offer initial consultations to outline likely costs and fee structures. Be sure to ask about billing practices, retainers and fee estimates early in the process.

Additional Resources

When seeking help or information, consider these types of resources and organizations available to people in Flushing:

- U.S. Bankruptcy Court for the Eastern District of New York - for local bankruptcy procedural information and court contacts.

- U.S. Trustee Program - oversees bankruptcy administration and trustee appointments.

- New York State Unified Court System - for state court procedures including receiverships and foreclosure forums.

- New York State Department of Taxation and Finance - for state tax issues that can affect restructurings.

- Queens County Bar Association and New York City Bar Association - local attorney referral services and practice resources.

- Legal Services organizations - such as local legal aid programs or consumer bankruptcy clinics that help low-income individuals.

- Professional groups - American Bankruptcy Institute, National Association of Consumer Bankruptcy Attorneys and restructuring-focused trade organizations for educational materials and best practices.

- Local municipal agencies - such as the New York City Department of Small Business Services for business counseling and financial assistance programs.

Next Steps

If you think you need legal assistance with restructuring or insolvency, follow these practical steps:

- Gather documents - recent tax returns, bank statements, business financials, loan and mortgage documents, lease agreements, vendor contracts, judgment or lawsuit papers, payroll records, and any collection notices.

- Make a short timeline - when did financial problems start, what steps have been taken, and what deadlines or court dates do you face.

- Get an initial consultation - contact a bankruptcy or restructuring attorney familiar with Eastern District of New York practice and New York state remedies. Ask about experience with similar cases, likely options, and fee arrangements.

- Consider alternatives - ask about non-bankruptcy workouts, forbearance, assignment for the benefit of creditors, or prepackaged plans which may be faster or less costly.

- Prepare questions for counsel - potential outcomes, timing, costs, creditor responses, how to protect essential assets, and whether immediate filings or motions are recommended to stop collections.

- Avoid transfers or payments that could be problematic - do not make large transfers of assets or preferential payments to certain creditors without legal advice, as these may be subject to avoidance later.

- Stay organized and communicate - keep clear records, respond to counsel requests promptly, and follow court or creditor instructions while exploring solutions.

This guide provides general information and is not a substitute for legal advice. For advice tailored to your situation, consult a licensed attorney who handles restructuring and insolvency matters in Flushing and the Eastern District of New York.