The last several weeks have brought limited relief to businesses grappling with an immediate economic downturn that is the result of COVID-19 and social distancing. However, some businesses will require more help than short-term loans backed by the government can provide. They will need to restructure mortgage loans, reduce debt service, or even eliminate unsecured debt.
During this crisis, there will be an unprecedented number of bankruptcies filed and many companies and individuals will find bankruptcy as their last lifeline. There are several different types of bankruptcy depending if you own a home, a small business, or struggling to just stay on top of your credit cards and rent.
Businesses and individuals will be able to use powerful tools under the Bankruptcy code to clear up debts, and clean your balance sheet while also getting breathing room and preventing creditors coming in and taking over. Its more important then ever know and understand your rights as a consumer or business. There is extended protection under the CARES in conjunction with traditional bankruptcies filings.
There are 3 primary types of Bankruptcy filings which included Chapter 7, Chapter 11, and Chapter 13. Each one depends on if your a business, if you want to keep your doors open or forced to liquidate your assets. If your an individual looking for a lifeline a Chapter 7 can provide immediate relief. The CARES act chapter 11 subchapter V allows businesses with up to 7,500,000 dollars to now file for a 11 protecting their assets, which is available for only 1 year, at which time the amount will return back to 2 million and change.
COVID – 19 has made these times uncertain and its important to talk to the experts about what your options may be. Contacting us is hassle free and may be the best option you have to protect yourself.
In Summery
We are all heading into a period of significant economic disruption, likely for an extended period of time until we have reliable testing, strong therapeutics, and a vaccine for the novel coronavirus causing COVID-19. Contacting us will provide a free consultation and make you fully aware of your options. We can help position you so you don’t have to worry.