Landlords Bombard Brooklyn Bankruptcy Court With Hopeless Cases

Financially distressed building owners in New York City’s outer boroughs and Long Island are filing untenable bankruptcy cases with abandon, flooding the district with hundreds of commercial cases that are doomed to fail from the start.

Those cases are surging in the US Bankruptcy Court for the Eastern District of New York, filed largely by corporate entities owning small, mostly residential properties that can’t keep up with their mortgages.

Complicating an already heavy volume of legitimate real estate bankruptcies in the city’s most populous boroughs of Brooklyn and Queens, the problematic filings often function solely to frustrate the foreclosure process. ...