Fleet Aviation files to liquidate under Chapter 7

There will be one less charter flight company servicing the East Coast. Fleet Aviation LLC, which operates out of Westchester County Airport in New York and serves vacation destinations like Martha’s Vineyard, Nantucket and the Hamptons, has filed for Chapter 7bankruptcy. As a result, the company will cease to exist and its assets will be liquidated to pay off debt. Fleet Aviation has had its share of troubles recently. In August, the U.S. Attorney’s Office in Manhattan sued the carrier for violating federal aviation regulations, alleging it used an unqualified pilot on numerous flights in 2008 and 2009. That lawsuit was settled when the company agreed to pay a fine of $40,000. Earlier in the year, the company’s CEO resigned. In its bankruptcy filing in U.S. Bankruptcy Court for the Southern District of New York, the company listed up to $50,000 in assets and up to $500,000 in debt. Chapter 7 for businesses is a measure used when a business has overwhelming debt and can no longer operate profitably. Once Chapter 7 bankruptcy is filed, all collection actions stop. The court then appoints a trustee to sell the company’s assets and pay off debt to creditors and investors based on… Continue reading

Big jump in foreclosure filings for the New York area

Among the country’s 20 largest metropolitan areas, the New York area saw the biggest increase in foreclosure filings during the third quarter of this year. According to data provider RealtyTrac Inc., the region saw a 69 percent increase in default, repossession and auction filings, counter to the national trend. While more than three-fifths of U.S. metropolitan areas saw filings decrease from the same period last year, New York filings increased as lenders began working through a backlog of pending foreclosures. New York has the nation’s longest foreclosure process. Filing for Chapter 13 bankruptcy may be an option for New York area homeowners who are facing foreclosure. Chapter 13 bankruptcy, also called a wage-earner’s plan, allows individuals who have a regular source of income to develop a debt repayment plan to pay creditors in installments over three to five years. The length of the plan depends in part on the debtor’s current monthly income. Individuals who file for Chapter 13 bankruptcy may also be able to stop foreclosure actions and cure delinquent payments over time as long as they make timely mortgage payments during the Chapter 13 repayment plan period. If you are facing foreclosure of your home, it would be… Continue reading

Suzuki’s American unit files for bankruptcy

Slow sales and a patchy safety record may have led Suzuki’s United States division to file for Chapter 11 bankruptcy protection. However, the company has good sales in other emerging markets such as India and Southeast Asia. In Japan, Suzuki meets the requirements for inclusion in the “kei” vehicle market whose cars must meet small size requirements and power limits, and the company’s cars have historically done well there. A strong yen has also made it more fiscally wise to sell cars in Japan rather than shipping them to America. The distributor for American Suzuki filed its bankruptcy petition with a declared $346 million in debt. The company cited low sales, a limited lineup and poor exchange rates as reasons for the petition. The company also cited the high cost of doing business under United States regulatory requirements as another reason for the decision. The company will continue to sell its inventory at dealerships, and current owners will be able to acquire parts and exercise rights under existing warranties. The company will not stop sales of motorcycles, boats and ATVs in the United States. A business bankruptcy for a company of this size can be very complicated and requires a… Continue reading

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