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.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- 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
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
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.