New York’s attorney general is calling on the government to take over the business of administering the state’s bankruptcy laws, and the attorney general’s office says the plan would “undermine the very values” of bankruptcy law.
The state legislature approved a bill on Monday to put the government in charge of running the state and its finances.
The new plan, which also calls for a moratorium on certain kinds of lawsuits, is part of a broader effort by Republican Gov.
Andrew Cuomo to roll back the power of the courts.
The new plan also calls on the state to give the state attorney general a new, new authority to “take all reasonable steps” to take away legal protections from bankruptcies and to make it harder for a debtor to challenge his or her own bankruptcy, and to require bankruptcy attorneys to “adopt and enforce” the law in order to protect their clients’ rights.
The governor’s plan was initially criticized for being too far-reaching, and it’s not clear if that criticism will stick.
But the governor’s budget director, Steve Levine, said the plan is a “very, very serious threat to our economic growth and job creation.”
The state has been in the process of changing its bankruptcy laws since 2013, when New York became the first state to allow people to file for bankruptcy in the aftermath of the 2008 financial crisis.
The bill, which is being called the New York Bankruptcies Reform Act, was originally introduced in the state Senate in April, but it died in committee.
Cuomo has also said that he will not sign the bill into law if it doesn’t go through his budget director.
The law also gives the state bankruptcy attorney general the authority to dissolve the bankruptcy court, and if the attorney General does that, the court would become part of the state government.
In addition to the power to dissolve and merge the bankruptcy courts, the new plan would give the attorney-general the power, under certain circumstances, to appoint the bankruptcy judge to oversee the liquidation of the bankruptcy, which would be the process that would allow the state, and any creditors, to get out of a bankruptcy.
The plan calls for the state bankrupt to pay its debts in installments and to be allowed to “discharge” those debts at a reduced rate, but the attorney said that this plan is meant to “prevent a bankruptcy from taking effect.”
“It’s a very, very dangerous plan,” Levine said.
“I’ve had a couple of lawyers tell me that the only way to get people to pay their debts is to do what they’re doing right now, which I think would be to do nothing.”
The attorney general said in a statement that the plan “would further erode the very valuable bankruptcy protection afforded by the New-York Constitution.”
The plan would also allow the attorney, with the approval of the judge, to “obtain, use, and dispose of” assets that would be part of an insolvency case, which in this case would be an estate of a deceased person.
The attorney- general said that under the plan, “the attorney general would be able to remove the estate from the probate process, to use the assets to pay legal fees in court, to file liens against the estate, and even to sell the assets if they were sold.”
The New York attorney general has also been advocating for a state-wide moratorium on lawsuits against bankruptcies, saying that bankruptcies have become an “unprecedented tool” to force people to repay debts, and that the courts are “unfair to the victims of bankruptcy” by making it difficult for them to challenge their debts.
The Associated Press contributed to this report.