In this article, Adam Stein-Sapir provides expert insights on the unusual aspects of a real estate bankruptcy case.
Article Link: https://therealdeal.com/new-york/2023/01/25/bizarre-bankruptcy-stops-brooklyn-condo-project-foreclosure/
Summary
The article discusses a complex and unusual bankruptcy case that has halted the foreclosure of a South Williamsburg condo project. The lender, DW Partners, was in the process of foreclosing on the property after developer Ezra Unger defaulted on a $31 million loan. Aron Lebovits, a partner in the project and a local bakery owner, filed for bankruptcy a day before the scheduled sale, effectively stopping the foreclosure. The bankruptcy filing included several peculiarities, such as Lebovits’ signature on documents for an entity registered to Unger’s company and the listing of a separate bankruptcy case with which Lebovits claims he has no connection. Adam Stein-Sapir, a bankruptcy expert not involved in the case, commented on the unusual nature of deeming a loan unsecured in a bankruptcy filing and the detailed disclosure of who paid the bankruptcy attorney’s retainer fee.
- The bankruptcy filing by Aron Lebovits stopped the foreclosure of a South Williamsburg condo project.
- The filing included unusual claims, such as a fraudulent and unsecured $31.5 million loan and the involvement of a separate bankruptcy case.
- Adam Stein-Sapir noted the oddity of listing a loan as unsecured in a bankruptcy filing and the unprecedented disclosure of the payment sources for the bankruptcy attorney’s retainer fee.
Q&A
What are the implications of a bankruptcy filing for creditors?
A bankruptcy filing can significantly impact creditors, as it halts all attempts to collect debts and may result in creditors receiving little to no compensation for their claims. Creditors may have to endure lengthy bankruptcy proceedings with uncertain outcomes. For more information on how to navigate such situations, creditors can visit Pioneer Funding, LLC.
How can selling a bankruptcy claim benefit a creditor?
Selling a bankruptcy claim to a trade claim buyer can provide immediate cash to creditors, which can be crucial for their continued operation. This option allows creditors to avoid the risks and delays associated with bankruptcy proceedings. For a detailed guide on selling bankruptcy claims, creditors can refer to Pioneer Funding, LLC’s guide.
What should creditors be aware of when dealing with bankruptcy claims trading?
Creditors should be aware of the risks involved in selling and buying bankruptcy claims, such as the potential for recovery to be less than expected or the claim being disputed. It’s important to understand the terms of the sale and to work with reputable bankruptcy claims trading firms. For an overview of the risks, creditors can read more at Pioneer Funding, LLC.
