Bankruptcy cases can take a while, especially when the court has to approve the discharge and the reorganization plan under a Chapter 11 Bankruptcy filing.
The law firm Dewey and LeBoeuf filed for a Chapter 11 bankruptcy two years ago. Two members, who were responsible for running the company, requested that â€œdiscovery of a trustee and a creditor’s suitâ€ be postponed. However, the court disagreed with them, as reported by the New York Law Journal in a March 21, 2014 article.
Since there are criminal charges pending against two former officers, the court does not want to postpone the bankruptcy. Thus, it allowed the case to proceed. Moreover, the criminal case might take a while. Even though the judge postponed the deposition of two high level officers, this does not mean that they are off the hook, and are allowed to withhold documents.
As a result, one of Deweyâ€™s creditors requested the court to allow it to â€œto amend its complaint to reflect “recent disclosures in criminal and civil proceedings arising from the failure of Dewey & LeBoeuf.” Some of the officers were charged within these past couple of weeks â€œfor their role in an alleged scheme to defraud and steal from investors and others.â€ Thus the Securities and Exchange Commission has got involved and brought suit against some officers for fraud.
The trustee assigned to the case wanted to reimburse the officers for their wages, but this is awaiting court approval, since the wages are claimed to be unnecessary and irrelevant.
If you are considering filing a personal bankruptcy, then you should speak with an experienced attorney who can explain what your rights are and help you choose what is right for you. Jayson Lutzky is a lawyer with over 30 years of experience practicing law and has represented thousands of satisfied clients. He offers free, in person, confidential initial consultations. Call 718-514-6619 to set up an appointment or visit www.MyNewYorkCityLawyer.com for more information.