Archive for September, 2009

Written by Craig D. Robins, Esq.

Empire Masonry Contracting Corp., of East Setauket, New York, filed for Chapter 11 bankruptcy relief on September 14, 2009 in the Central Islip Bankruptcy Court under case number 8-09-76876. Judge Robert E. Grossman is the assigned bankruptcy judge.

This is a Chapter 11 case that is one of my own cases that I, Long Island Chapter 11 bankruptcy attorney, Craig D. Robins, Esq., filed.  The amount of the pre-petition retainer for legal fees and disbursements was $15,039.

The debtor provides commercial masonry services in the New York metropolitan area, has several ongoing jobs, and is solvent and operating profitably.  It has gross revenues of several million dollars per year.

According to the Chapter 11 Affidavit filed with the Court, the debtor fell behind with its financial obligations and now requires bankruptcy relief because several large, slow-paying accounts drove the debtor into a position of low liquidity, preventing the debtor from maintaining timely payments  to creditors, primarily withholding taxes it owes to the Internal Revenue Service.

In addition, the type of contracting services the debtor provides requires that a portion of each contract be set aside as “retainage” until the completion of construction. Despite the retainage amounts being held back as assurance for the quality of work, the retainage sums recently have taken an extended time to obtain.The debtor anticipates quickly obtaining confirmation of a Chapter 11 plan of reorganization which will enable it to pay all creditors in full.

The Meeting of creditors will be held on October 16, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 562 at 10:00 a.m.).  The first Status Conference before Judge Grossman has not yet been scheduled.

This post is one of a series of posts available on the Long Island Bankruptcy Blog detailing every Chapter 11 bankruptcy case filed in the Central Islip Bankruptcy Court since August 1, 2009.  I will typically post a summary of each Chapter 11 case several days or weeks after it is filed as not all info is available immediately upon filing.  To see a list of Chapter 11 cases profiled on this blog, click Chapter 11 Filings on Long Island or type the name of the debtor in the upper right search box.

Written by Craig D. Robins, Esq.

Debtor goes it alone after Chapter 13 case was dismissed for jurisdictional ineligibility

Deodath Ramcharan, an individual, filed for Chapter 11 bankruptcy relief on September 8, 2009 in the Central Islip Bankruptcy Court under case number 8-09-76724. Judge Alan S. Trust is the assigned bankruptcy judge.

Nevertheless, the Meeting of creditors will be held on October 9, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 562 at 9:00 a.m.).  The first Status Conference before Judge Trust has not yet been scheduled.

This post is one of a series of posts available on the Long Island Bankruptcy Blog detailing every Chapter 11 bankruptcy case filed in the Central Islip Bankruptcy Court since August 1, 2009.  I will typically post a summary of each Chapter 11 case several days or weeks after it is filed as not all info is available immediately upon filing.  To see a list of Chapter 11 cases profiled on this blog, click Chapter 11 Filings on Long Island or type the name of the debtor in the upper right search box.

Written by Craig D. Robins, Esq.

Government considers placing restrictions on loan modification companies

Fraudulent mortgage rescue schemes is reaching an “epidemic.” This is what several federal and state agencies said last week in a joint press conference as they pledged to increase efforts to investigate and crack down on loan modification abuse and companies offering help for homeowners.

Many Americans who have been caught hard by the recession and are scrambling to avoid foreclosure have become easy prey to dishonest mortgage modification companies.

.This is especially prevalent here on Long Island where I regularly meet with clients in my Long Island foreclosure defense and bankruptcy practice. I frequently hear tales of woe from clients who paid thousands of dollars upfront to companies who promised them the moon, but sadly produced absolutely no results.

 See my previous post:  Can You Trust a Mortgage Modification Company?

Many, many dishonest mortgage modification firms across the country

Now the Federal Trade Commission is considering an outright ban on upfront mortgage modification fees because so many dishonest companies have taken advantage of innocent homeowners.

In addition, the U.S. Treasury, Department of Housing and Urban Development, and Justice Department said they plan to alert financial institutions to emerging mortgage modification schemes, step up enforcement actions and educate consumers.

The FTC also said that when a mortgage modification firm asks for an advance fee, it’s a red flag that the service is bogus.

Another common problem involves the many companies who use deceptive advertising that is designed to trick consumers into thinking that they are participating in a government program.

Meanwhile, the FBI announced that it has over 2,600 mortgage fraud cases open, most of which involve substantial losses of more than $1 million.

Some Long Island homeowners have actually lost their homes because they relied upon mortgage modification companies to save them, but the companies utterly failed to do anything other than take their money.

A statement made by the Governor of Connecticut summed up well the current sentiment at the press conference: “These mortgage rescue scams raise false hopes and then cruelly exploit them, which is why my office is fighting them and welcomes the federal government as a strong ally.”

Free Housing Counselors

Although my office provides bankruptcy and foreclosure defense legal services, we do not do mortgage modifications. For that, we recommend obtaining free help from government-approved housing counselors..

Homeowners can locate free government-approved housing counselors at http://www.makinghomeaffordable.gov or by calling (888) 995-HOPE.

by Craig D. Robins, Esq.

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Written by Craig D. Robins, Esq.

C.D. Autos, Inc., a Mazda car dealer, filed for Chapter 11 bankruptcy relief on August 27, 2009 in the Central Islip Bankruptcy Court under case number 8-09-76424. Judge Alan S. Trust is the assigned bankruptcy judge.

The debtor is a Nassau County car dealer who does business as Mazda Automobiles of Great Neck at a facility located at 240 Northern Blvd., Great Neck, New York.

The company, which is located in Great Neck, is being represented by Nassau County bankruptcy attorney Kenneth A. Reynolds of McBreen & Kopko. No disclosure of Compensation was filed. Most of the schedules, which were required to be filed by September 8, 2009, were not filed in a timely fashion.

The Debtor’s bankruptcy filing was necessitated by the fact that the New York State Department of Taxation had padlocked the Debtor’s car dealership thereby depriving the Debtor of its ability to operate its business, which failure to operate constitutes a breach under Debtor’s Mazda franchise agreement.

The Meeting of creditors will be held on October 2, 2009 at the United States Bankruptcy Court for the Eastern District of New York in Central Islip (Room 563 at 9:00 a.m.). An emergency motion for use of cash collateral was held before Judge Trust on August 28, 2009, and adjourned to September 9, 2009.

This post is one of a series of posts available on the Long Island Bankruptcy Blog detailing every Chapter 11 bankruptcy case filed in the Central Islip Bankruptcy Court since August 1, 2009.  I will typically post a summary of each Chapter 11 case several days or weeks after it is filed as not all info is available immediately upon filing.  To see a list of Chapter 11 cases profiled on this blog, click Chapter 11 Filings on Long Island or type the name of the debtor in the upper right search box.