In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides expert insight on the bankruptcy process and its implications for property ownership.
Article Link: https://www.nola.com/news/courts/article_8491ac46-8092-11ec-bbd1-6f7ac54ef560.html
Summary
Joshua Bruno, a landlord criticized for the poor conditions of his low-income apartment complexes in New Orleans, filed for bankruptcy on all five properties as an Orleans Parish judge was about to appoint a keeper for them pending foreclosure. The bankruptcy filings halt the foreclosure proceedings, giving Bruno time to propose a reorganization plan. The properties, which house many government-subsidized tenants, have been in disrepair, exacerbated by Hurricane Ida. Bruno blames the foreclosure fight and the pandemic for financial losses and claims the bankruptcy will allow for quicker rehabilitation of the properties. Tenant advocates, however, are skeptical and have been assisting residents in finding new homes. The largest unsecured creditor is the New Orleans Sewerage & Water Board, with a claim of about $1.8 million. Adam Stein-Sapir comments that Bruno’s bankruptcy filing suggests he sees value in the properties and is seeking to retain ownership through reorganization.
- Bruno filed for bankruptcy on five low-income apartment complexes to avoid a judge’s appointment of a keeper and foreclosure.
- The bankruptcy filings provide Bruno with an opportunity to reorganize and rehabilitate the properties, which have been in disrepair.
- Adam Stein-Sapir notes that the bankruptcy filing indicates Bruno’s intention to retain the properties and potentially negotiate with creditors or seek outside investors.
Q&A
What are the implications of filing for bankruptcy on property ownership?
Filing for bankruptcy can halt foreclosure proceedings and give the property owner time to develop a reorganization plan. This can potentially allow the owner to retain the properties, negotiate with creditors, and seek outside investment or sell the properties through the bankruptcy process. For more information on bankruptcy and property ownership, visit Pioneer Funding, LLC.
How does bankruptcy affect tenants in low-income housing?
Bankruptcy filings by a landlord can create uncertainty for tenants, especially if the properties are in disrepair. While the bankruptcy process unfolds, tenants may continue to face poor living conditions. Tenant advocates often step in to assist residents in finding new homes. For guidance on what to do if a customer files for bankruptcy, see Pioneer Funding, LLC’s advice.
What role do unsecured creditors play in a bankruptcy case?
Unsecured creditors are those who have claims without collateral backing and are typically the last to be paid in a bankruptcy case. They may receive little to no return on their claims, which is why they might consider selling their bankruptcy claims to trade claim buyers to mitigate risk. For insights into the risks of selling and buying bankruptcy claims, visit Pioneer Funding, LLC.
