COVID-19 and Chapter 11 Bankruptcy Debt Relief
Under the unique circumstances of the COVID-19 situation, a Chapter 11 Bankruptcy can help your business get back on track.
How a Chapter 11 Bankruptcy can protect your business and get you back to profitability
It can work for Individuals too...
It doesn’t matter whether you are a business or an individual, the COVID-19 shutdowns have financially devastated a lot of people and businesses. But, we can use a Chapter 11 Bankruptcy case to undue a lot of the damage and get things back on track.
- The automatic stay will immediately stop nearly all lawsuits, including evictions, giving you the time you need to address the issues without needing to do so haphazardly.
- In many cases, you can get money back that creditors may have taken from you involuntarily through bank levies, garnishments, and repossessions.
- You can repay many (if not most) of your creditors only a fraction of what is otherwise owed, usually a few cents on the dollar.
- If you qualify for a “Subchapter V” bankruptcy case, we can involuntarily refinance or adjust loans you used for your business that are secured against your home.
- You can cancel leases for things that you no longer need to operate your business, including office equipment such as copiers, manufacturing machinery, software, etc.
- The ability to sell property by removing secured loans that exceed the value of the asset through “lien stripping” using the provisions of the bankruptcy code for a sale “free and clear of liens”.
- The ability to catch-up past-due rent.
- Access to “super-priority financing” that allows you to borrow money from lenders that would otherwise not be willing to provide you with loans you desperately need.
- You can get out of leases for locations that no longer work for your business.
- You can raise money for your operations by “selling” leases for locations that don’t work well for you but that might work for others.
- You can downsize your automobile fleet to better match your needs by returning cars and cancelling long-term leases.
- You can cancel employment contracts and adjust your payroll obligations.
- You can force your creditors to refinance your loans (including cars and real estate) on terms that you are better able to handle, including interest rates and often even the principle amount of the loan.
For Households / Individuals:
- You can often change all your “private” student loan debt to “income-based repayment” terms that will allow you to make smaller payments (or no payments) while your income is reduced or low.
- You can arrange for the return of a repossessed car if we file in close proximity to when the car was repossessed.
- You can usually get money taken involuntarily from you by bank levy or garnishments if we act quickly.
- You can stop wage garnishments almost immediately and start getting your full paycheck again.
- You can propose a plan that will catch-up on past-due mortgages and house payments without fear of a foreclosure.
- In some instances, we can reduce the mortgage balance to the fair market value of the property and pay the remainder only a fraction of the full amount due.
- Stop lawsuits and collection activity on nearly all of your credit cards, medical debt, or loans immediately on filing.
- Pay only a fraction of the debt you’ve accumulated while out of work or while your business has been shut down, and pay that over an extended period of time (typically 5 years).