Bankruptcy Blog

2021 is just around the corner and it is time to start thinking about how you want it to be different. Resolutions are nice, but they rarely succeed. Goals are better. Ones that are reachable with a plan and steps to get you there. If one of your goals for the new year is to get out of debt, it is time to start planning. Getting your plan in place before the end of the
The benefit of this chapter is that you repay some of your debts—but usually not all—over the course of a three- to five-year repayment plan. But before the court approves your plan, you must fill out the official bankruptcy paperwork and prove that you are: up-to-date on tax filingswithin debt amount limitationsemployed and have enough income to cover the required monthly payment, andan individual, not a business (however, all financial aspects of a sole proprietor’s
Chapter 11 vs. Chapter 7 First, if you expect your business to remain viable in the long-term but need relief from creditors now, a new option under Chapter 11 may be appropriate. This path allows a firm to remain operational and, generally speaking, renegotiate its debt and repay over a set amount of time, as well as take other steps to return to profitability. Called Subchapter 5, this route — it took effect in February
On March 20, 2020, the Secretary of Education of Federal Student Aid provided the following relief on federal student loans. Suspend loan paymentsStop collections on defaulted loansSet interest rates to 0% for a period of 60 days. On March 27, 2020, Congress passed the CARES Act which provides this relief through September 30, 2020. On August 8, 2020, President Trump directed the secretary to continue to suspend loan payments, stop collections, and waive interest on
As we near our 9th month of the coronavirus pandemic, 43 retailers have filed for bankruptcy. Many of these companies were already in the beginning stages of bankruptcy or heading toward it before the pandemic started.  With less than 5 months left in the year, there have already been more retail bankruptcies this year than in the past 8 years.  The pandemic has exasperated challenges for some retailers that were already having trouble reaching new