NewsPatrick T. Collins Quoted in Newsday on Alure Home Solutions Bankruptcy
Last month, prominent home improvement company Alure Home Solutions abruptly closed after its parent company filed for Chapter 7 bankruptcy, leaving many homeowners with limited options.
Bankruptcy & Restructuring partner, Patrick T. Collins, spoke with Newsday to explain what affected customers can expect in the coming weeks.
From the article:
But local legal experts said customers are often in a precarious position in Chapter 7 bankruptcies. Unlike Chapter 11, which allows companies to reorganize, pay off debts and continue to operate, Chapter 7 means complete liquidation and closure, said Patrick Collins, a bankruptcy and restructuring lawyer and partner at Farrell Fritz in Uniondale.
Traditionally, in Chapter 7 cases, bankrupt companies must pay back a long list of creditors in a particular order, Collins said. Lenders are usually classified as secured creditors and get priority, followed by customers or impacted employees, who are considered unsecured creditors.
But with more than 600 creditors nationwide listed so far, and a pending lawsuit from employees seeking unpaid wages, it’s unlikely much will remain for customers.
Read the article here: Alure Home Solutions’ collapse leaves Long Islanders with unfinished work and lost deposits – Newsday