Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
New York Bankruptcy Court Faces Budget Constraints
Author: Joel R. Glucksman
Date: June 7, 2013
Key Contacts
Back
Economic constraints and the federal sequester have impacted several governmental agencies and industries. Now, it appears that one of the nation’s most high-traffic bankruptcy courts is also experiencing financial pressure.
Dow Jones reports that budgetary constraints are making it more challenging for the U.S. Bankruptcy Court for the Southern District of New York to manage its costs. Funding for the court fell to $5.06 million for 2013 from $8.06 million in 2011, a 37 percent reduction over the two-year period, the news source explains. The court is also likely to experience another round of cuts in 2014, despite its high volume of Chapter 11 bankruptcy cases.
“Being a chief during the sequestration and during the financial issues that anyone in the federal court is facing, it’s very difficult,” Chief Judge Cecelia Morris told Dow Jones.”We’re hurting. But we’ve been stepping down for a period of time.”
New York is not the only state impacted by falling budgets. Other courts nationwide are also trying to maintain smooth and efficient operations under financial constraints. The widespread issues prompted the Judicial Conference of the United States to submit a request for $72.9 million in emergency funding, arguing that the additional funds are necessary to “address critical needs resulting from sequestration cuts,” according to the United States Courts.
Although many federal offices are operating under reduced resources, separate data compiled by analytics firm Credit2BTM indicates the number of businesses seeking bankruptcy law protection fell nationwide during calendar year 2012 and the first quarter of 2013. The company reports a 16 percent decline in business bankruptcy filings for calendar year 2012, and a 22 percent drop during the first three months of 2013 compared to the same period last year. The drop in bankruptcy filings may help offset some of the costs bankruptcy courts are facing until they are able to fully recover their budgets.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.