Best Restructuring & Insolvency Lawyers in New York City

1. About Restructuring & Insolvency Law in New York City, United States

Restructuring and insolvency matters in New York City primarily involve the federal Bankruptcy Code and New York state laws. In practice, most corporate restructurings occur under Chapter 11, while individuals may pursue Chapter 7 or Chapter 13 relief. The bankruptcy courts serving NYC are part of the Southern and Eastern Districts of New York (SDNY and EDNY). Attorneys in NYC guide clients through stays, asset sales, debt restructurings, and plan confirmations.

Chapter 11 is used to reorganize a business while it continues operations, often with a debt restructuring plan and protections like automatic stays. Chapter 7 involves liquidation of non-exempt assets and discharge of debts, while Chapter 13 provides a court-supervised, court-approved repayment plan for individuals with regular income. In New York City, practitioners routinely address complex commercial leases, liens, and real estate ownership during restructurings.

Local practice in NYC also intersects with New York state debtor protection statutes and enforcement rules. Lawyers must understand how state exemptions, fraudulent transfer rules, and foreclosure procedures interact with federal bankruptcy relief. This blend shapes strategies for debtors and creditors throughout the city’s diverse industries, including real estate, hospitality, and finance.

2. Why You May Need a Lawyer

The following real-world scenarios illustrate concrete reasons to hire an insolvency attorney in New York City. Each example reflects common NYC-specific dynamics like heavy commercial leases, active lien and collateral networks, and cross-border creditor concerns.

• A Manhattan retailer with mounting vendor debt and a large net lease portfolio seeks Chapter 11 to keep operations while negotiating lease restructurings and a plan that preserves store footprint. An attorney helps with automatic stays, critical vendor protections, and a plan that balances landlord concessions with creditor recoveries.
• A New York City construction firm faces mechanics liens and subcontractor claims. An attorney analyzes lien priorities, witnesses potential avoidance actions, and guides a Chapter 11 plan to restructure debt while preserving ongoing projects.
• A small NYC tech startup qualifies for Subchapter V of Chapter 11 and needs a streamlined process to reduce creditors, obtain DIP financing, and craft a feasible reorganization plan. Legal counsel coordinates creditor negotiations and a simplified plan process.
• An individual in Brooklyn or Queens with substantial medical debt considers Chapter 7 or Chapter 13. An attorney explains exemptions under New York law, whether liquidation or a repayment plan best suits the client, and how long the process may take.
• A mid-size NYC real estate developer faces default on multiple loans and seeks to restructure debt to avoid casualty of foreclosure. An attorney evaluates sale options, debt-for-equity swaps, and a feasible plan that satisfies creditors and the court.
• A business creditor in NYC suspects a debtor has transferred assets fraudulently. An attorney advises on avoidance actions and how those actions influence the bankruptcy case, including potential preference challenges.

In each scenario, a qualified insolvency solicitor brings practical experience with NYC courts, local procedures, and the interplay between state exemptions and federal bankruptcy relief. A NYC-based attorney can also coordinate with the U.S. Trustee and the bankruptcy courts to manage timelines, filing requirements, and courtroom appearances.

3. Local Laws Overview

Two broad categories guide Restructuring & Insolvency in New York City: federal bankruptcy law and New York state law. The interplay between these regimes shapes relief options, timelines, and strategies for debtors and creditors in NYC.

• 11 U.S.C. Chapter 11 (Bankruptcy Code) - Governs corporate reorganizations and, in appropriate cases, individual reorganizations. This is federal law and applies across all districts, including SDNY and EDNY. Chapter 11 allows a debtor to continue business operations while restructuring debts under a court-approved plan.
• Subchapter V of Chapter 11 - A streamlined path designed for small businesses, enacted by the Small Business Reorganization Act (SBRA) of 2019. Subchapter V took effect in February 2020 and has since become a commonly used option for NYC entities seeking faster, simpler restructurings with fewer procedural hurdles.

  Subchapter V offers a streamlined plan process and broad discharge options for small businesses.

  Source: United States Courts.
• New York Debtor and Creditor Law (DCL) - State law governing property exemptions, preferential transfers, and other debtor-creditor protections. DCL provisions can influence which assets are protected and how creditors pursue collection during and after bankruptcy. For NYC residents and businesses, DCL interacts with federal exemptions under 11 U.S.C. 522 and state-specific strategies. New York State Legislature - Debtor and Creditor Law.
• New York Real Property Actions and Proceedings Law (RPAPL) - Governs foreclosures and enforcement of real property rights in New York. RPAPL provisions are frequently relevant in NYC bankruptcy contexts where real estate collateral is involved. New York State Legislature - RPAPL.

Additional context comes from federal and local court resources. The official bankruptcy framework and procedural rules are published by the federal judiciary, while New York state law provides debtor protections and foreclosure dynamics that affect NYC cases.

New York courts and federal courts cooperate to administer insolvency cases with local procedures in mind.

4. Frequently Asked Questions

What is Chapter 11 bankruptcy and who uses it?

Chapter 11 is a reorganization process for businesses and some individuals with substantial debts. It allows operations to continue while restructuring obligations under a court-approved plan. In New York City, many mid-size to large firms use Chapter 11 to preserve value and negotiate with creditors.

What is Subchapter V and who qualifies for it?

Subchapter V is a streamlined Chapter 11 option for small businesses with a debt threshold. It aims to shorten timelines and reduce costs. Qualification depends on meeting current statutory limits and business type.

What is the difference between Chapter 7 and Chapter 11?

Chapter 7 involves liquidation of non-exempt assets and discharge of debts. Chapter 11 focuses on business continuation and debt restructuring under a reorganization plan with creditor involvement.

Do I need an attorney to file bankruptcy in NYC?

Yes. Filing without counsel risks procedural errors, missed deadlines, and weaker outcomes. An NYC insolvency attorney can tailor a strategy to your assets, leases, and creditors.

How long does a Chapter 11 case typically take in NYC?

Typical timelines span several months to a few years depending on case complexity, creditor involvement, and court approval of the plan. Subchapter V cases often proceed faster than standard Chapter 11 cases.

What is the role of a creditors committee in NYC bankruptcy cases?

A creditors committee represents unsecured creditors and monitors the debtor's actions. It has the right to negotiate, influence the plan, and inspect financial records.

Can I keep my NYC real estate while in Chapter 11?

Often yes, if the plan provides for ongoing lease payments or restructured debt terms. The court must approve the plan and ensure creditors are treated fairly.

Should I consider a Chapter 11 if I have significant leases in NYC?

Yes, Chapter 11 is commonly used to renegotiate commercial leases and preserve operations. It also provides a structured framework to address landlord objections.

What are the costs of hiring an insolvency attorney in NYC?

Costs vary by case complexity and firm size. Expect hourly rates that reflect NYC market levels and potential retainer arrangements for ongoing representation through plan confirmation.

How do exemptions affect my bankruptcy in New York?

Exemption rules determine what property you can protect from liquidation. New York law interacts with federal exemptions depending on election and case specifics.

What is the typical timeline to obtain relief under Subchapter V?

Subchapter V timelines are generally shorter than traditional Chapter 11, but outcomes depend on asset mix, creditor negotiations, and plan acceptance by the court and creditors.

Is an NYC bankruptcy filing different for large real estate companies?

Large real estate entities may require sophisticated debt restructuring plans, DIP financing, and coordinated lender consortia. The court will scrutinize the feasibility and impact on tenants and property values.

5. Additional Resources

• United States Courts - Bankruptcy Basics - Official government information about bankruptcy, chapters, and processes. https://www.uscourts.gov
• U.S. Trustee Program - Federal agency overseeing bankruptcy administration and case administration. https://www.justice.gov/ust
• Southern District of New York Bankruptcy Court - Official court website for NYC bankruptcy matters and case filings. https://www.nysb.uscourts.gov

6. Next Steps

1. Assess your financial position and gather key documents, including statements, leases, and debtor-creditor communications. Plan for a consultation with an NYC insolvency solicitor within 1-2 weeks of data collection.
2. Determine the most appropriate relief (Chapter 7, Chapter 11, Chapter 13, or Subchapter V) based on debt type, assets, and income. Schedule a case evaluation with an attorney within 1-3 weeks.
3. Consult with a qualified insolvency solicitor in New York City to discuss strategy, potential DIP financing, and creditor dynamics. Expect an initial meeting within 1-2 weeks of contacting the firm.
4. Prepare a detailed list of all creditors, leases, liens, and secured interests. Your attorney will use this to assess plan feasibility and potential avoidance actions within 2-4 weeks.
5. Develop a preliminary timeline for filing, creditor meetings, and plan negotiations. A typical NYC Chapter 11 filing timeline ranges from 3-6 months for simpler cases to over a year for complex matters.
6. Evaluate alternatives to bankruptcy, such as out-of-court workouts or debt settlements, with your attorney. Decide in writing before moving forward within 2-6 weeks after gathering information.
7. Confirm local court requirements and deadlines for the chosen path. Your attorney will file with the appropriate SDNY or EDNY bankruptcy court and coordinate hearings.