When to expect your tax refund

New York residents who are facing financial challenges likely are eager to receive their income tax refunds from Uncle Sam. Those extra dollars can be used to pay bills, reduce credit card debt, or even splurge on something special. But some taxpayers may not receive their refunds when expected. In some cases, receipt may be delayed. In other cases, if the taxpayer owes back taxes, is behind in certain other payments, or is in Chapter 13 bankruptcy, he or she may not receive a refund at all. Generally, the IRS issues most refunds, about 90 percent of them, within three weeks after receiving the taxpayer’s income tax return. There are a few reasons why it may take longer, such as an error on the return or a failure to include a proper form. The quickest way to get your money is by requesting that it be directly deposited to your bank account. The money will come about five days sooner than if you request a check to be mailed. If you owe back taxes or are behind on your student loan or child support payments, you may not get your refund. In those cases, the IRS likely will apply your… Continue reading

How Chapter 11 helped save the economy

During the financial crisis of 2008, many companies in New York and across the United States benefited from Chapter 11 bankruptcy. Indeed, one Harvard Business School professor recently stated that Chapter 11 saved the U.S. economy. At one point during the financial crisis, a staggering $3.5 trillion in corporate debt was either distressed or in default. During 2008 and 2009, $1.8 trillion in public company assets entered bankruptcy under Chapter 11. As a result, financially troubled companies once thought to be on the brink of extinction were able to manage down their debt, restore their balance sheets and avert liquidation. Chapter 11 bankruptcy helps distressed companies remain viable by giving them more options for raising cash. After filing for Chapter 11 bankruptcy, a company does not have to pay interest on pre-bankruptcy debts. It may reject unprofitable leases and renegotiate unfavorable supply contracts and collective bargaining agreements. Through debtor-in-possession financing, it is able to attract new lenders who are given priority in the capital structure over pre-existing creditors. It may then sell assets via a competitive, court-supervised auction. While some have criticized Chapter 11 as being too slow and costly, the process has evolved and adapted to deal with large,… Continue reading

Oil and gas company files for Chapter 11 bankruptcy

GMX Resources Inc. says it will not contest any delisting procedures initiated by the New York Stock Exchange on the heels of the company’s bankruptcy filing. The oil and gas producer filed for Chapter 11bankruptcy on April 1, citing low natural gas prices as the cause of its continuing financial difficulties. The bankruptcy petition includes the company’s Diamond Blue Drilling and Endeavor Pipeline units. Endeavor Gathering LLC, a company in which GMX has a 60 percent ownership interest, was not included in the filing. GMX had pursued a number of strategies to right its financial ship, including efforts to increase the company’s production of oil, improve the efficiency of its operations and supply chain and reduce expenses. However, with the continued low price of natural gas and the need to spend more on its oil and gas businesses, the company’s financial pressures have mounted. Additionally, it has been unable to find any long-term financing solutions. As part of its bankruptcy reorganization, GMX says it plans to sell the company’s operating assets and undeveloped real estate holdings to senior note holders. In exchange, the company will receive $50 million in debt financing, which will be used to cover operating expenses. The… Continue reading

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