New York State Statutory Law & Bankruptcy
The US Bankruptcy Code relies heavily upon New York State statutory laws during the
administration of Chapter 7 liquidation cases, Chapter 13 wage earner plans,
and Chapter 11 business reorganization cases. The application of NY State Law in
Federal Bankruptcy Courts of NY is essential for balancing the interests
between debtors, creditors, and the public interest in maintaining
stability in commercial transactions. As a cornerstone of stability
throughout the state, New York state statutory law determines property
ownership rights, debtor and creditor rights, employment law and
employee rights, the process for enforcement of judgments, determinations of liability,
family obligations, and many more individual rights between individuals
and commercial businesses. Each year, in reaction to legislation passed
in Albany, new statutes, and amendment of existing statutes cause a ripple effect
which impacts all New York citizens' rights in Federal Bankruptcy Court. In the most basic
sense, rights in bankruptcy and Bankruptcy Courts are dependent upon
state law for the administration of justice.
Legal Rights Under New York State Statutory Law in Bankruptcy
State law, rather than federal, determines liability for credit card
debt, automobile loans, mortgages, common promissory notes, and other
contractual agreements. Because these liabilities comprise the bulk of
most consumer debt administered through NY Bankruptcy Courts, New York
State statutory law is necessarily incorporated into each case and
determines who is liable, how creditors may collect debts, sue
borrowers, and enforce judgements against state residents. Also, because
lawyers and law firms are inextricably intertwined in the collection
process, the nature of the attorney client relationship also greatly
impacts the final classification and treatment of debts in NY Bankruptcy
Courts. For more information, see:
Family Rights Under New York State Statutory Law in Bankruptcy
Public policy protects families. The best interest of children
(financial, emotional and legal interests) are protected to a high
degree by both state and federal courts. Following children, the marital
relationship and all rights, obligations, benefits and burdens
associated with marriage are determined by New York State statutory law.
After separation or divorce, spousal obligations become more complex,
yet nevertheless must be unraveled when NY Bankruptcy Courts determine
which family related debts survive discharge. For additional
information family obligations in bankruptcy, see:
Landlord-Tenant Rights Under New York State Statutory Law in Bankruptcy
Most attorneys consider the rights, titles and duties associated with
real estate ownership as a "bundle of sticks." The popularity of this
enduring metaphor is based upon it's accurate portrayal of the divisible
nature of property. Owners of real estate may strip away a portion of
title (individual sticks) and sell them, even temporally, to an
unlimited number of tenants throughout the state. Tenants in NY State
own a temporary right of possession in real estate described in property
lease agreements. Also, most real estate leases contain contractual
terms which regulate, and frequently alter the operation of New York
State statutory law. For more information about land-tenant rights in
bankruptcy, also
see:
Criminal Matters Under New York State Statutory Law in Bankruptcy
Criminal liability is treated differently under the Bankruptcy Code
than most ordinary debts. Criminal liability for harm caused against
others, without consent, is generally not dischargeable. Liability for
fraud, even though often difficult to distinguish from legally
aggressive business tactics, is also generally non-dischargeable. Be
aware, a prior court conviction is not required for a Bankruptcy Court
to find criminal liability and determine a particular debt is
non-dischargeable. Consequently, many creditors allege fraud as a basis
for objecting to discharge, and all to often, these creditors are
successful only because a debtor can not afford a legal defense in an
adversary proceeding. For additional legal information regarding
criminal liability in bankruptcy, see also:
During bankruptcy, debts associated with car accidents, if caused by DWI, DUI, or during
the commission of a crime, are nondischargeable because of the proximity
to prohibited conduct.
|
