Chapter 11 Bankruptcy in New York
for High Net Worth Individuals
We assist high net worth individuals to reorganize their finances within Chapter 11 Bankruptcy. Doctors, engineers, investment bankers and real estate investors have filed for Chapter 11 Reorganization in New York. The following are examples of case studies as to when Chapter 11 can or should be filed:
- Significant income tax debt over $350,000.00. In chapter 7, this would entail the need for an adversary proceeding against the IRS or NYS and this can be a long and time consuming process. Chapter 13 would not apply since the individual would be over the debt limit.
Case studies- Our firm lowered income tax debt over $800,000.00.
- Excess disposable income. This individual might fail the chapter 7 means test and might not qualify for chapter 13 if they are over the debt limit.
- Too much assets or complicated asset case. In chapter 7, these assets could be forced to be turned over to a trustee for liquidation.
Case studies- We have done 363 sales of real estate to fund chapter 11 plans in New York and to settle with secured creditors and taxing authorities. The individual even had excess funds at the end of the case after debt was eliminated.
– Our firm negotiated with mortgage creditors for creative workouts eliminating arrears and avoiding income tax forgiveness of debt.
- Payroll or trust fund taxes. Many of our chapter 11 filings in New York contain large tax debt averaging from $300,000.00 to $3M. This includes personal income taxes as well as payroll and sales taxes [trust fund taxes]. Chapter 11 enables the individuals to eliminate penalties on trust fund debt, restructure over extended periods and eliminate old income taxes that were timely filed.
We file chapter 11 cases in New York City, Chapter 11 cases in Brooklyn and we also do Chapter 11 filings in Central Islip, NY. These courts cover most areas in the tri state area, Long Island and Westchester counties.
Each Chapter 11 plan we file is unique to the client and tailored to their creditors. Since one of our partners is also a CPA, we can do operating report reviews and set up clients and their accountants on templates. All of these cumulative financial statements are used when we build a chapter 11 plan to best suit the individual’s needs. We also have specialized programs tailored to build our plans including usage of EXCEL and POWERPOINT.