COVID-19 and Chapter 11 Bankruptcy Debt Relief
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.
Under the harsh conditions of the COVID-19 situation, a Chapter 11 Bankruptcy can help your business get back on track.
Protect Your Business and Get Back to Profitability
Undoubtedly, COVID-19 shutdowns have financially devastated a lot of people and businesses. Fortunately, you can make a difference with the help of Chapter 11 Bankruptcy and improve the situation.
Chapter 11 Bankruptcy
Does your company undergo a financial crisis, the loss ratio over a long period, the inability to pay off debts to banks and counterparties? Then bankruptcy has discreetly sneaked into your business. Of course, it is a complicated and confusing process, but you have a chance to set things right!
Although Chapter 11 Bankruptcy is available to both businesses and individuals, this option is most commonly used by large companies and corporations. It determines the possibilities of debtor companies’ recovery and regulates the main procedures and corporate restructuring methods. According to this chapter, bankruptcy is an administrative process that allows a company with problems to reorganize and start over.
How It Works
The purpose of filing a Chapter 11 Bankruptcy application is for the company to continue acting as a more financially sustained organization. It involves:
- filing a petition for bankruptcy in court;
- preparing a detailed plan a schedule of all their current liabilities and assets;
- filing a disclosure statement detailing your financial position and operations;
- reorganization plan submission.
By choosing Chapter 11 Bankruptcy, debtors can:
- deter creditors from seizing their property and canceling lucrative contracts;
- continue to work with little or no intervention from creditors;
- to borrow by pledging assets, regardless of the rights of existing creditors;
- avoid payments on “old” obligations;
- do not charge interest on debts.
Ideal Decision for Businesses
Coronavirus pandemic has caused catastrophic damage to entrepreneurs. That is why we are ready to support those who got into difficulties.
What Opportunities You Get
- nearly all lawsuits, including evictions will be immediately stopped, so you’ll have time to address the issues without needing to cope with problems haphazardly;
- in many cases, if the creditors have taken money from you in the form of bank levies, garnishments, and repossessions by force, you can get them back;
- 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 the property by removing secured loans that exceed the value of the asset through “lien stripping” using the provisions of the bankruptcy code for sale “free and clear of liens”;
- the ability to pay off overdue 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 have an opportunity to 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 canceling long-term leases;
- cancel employment contracts and adjust your payroll obligations;
- force your creditors to refinance your loans (including vehicles and real estate) on terms that you are better able to handle, including interest rates and often even the loan’s amount.
Chapter 11 Bankruptcy – Lifeline for Individuals
Sometimes it seems that everything is under control. Still, suddenly, you get into debt up to your ears, have all kinds of loans, and understand that you’re in trouble as it is not easy to pay off creditors, especially when the amount of debt becomes threatening. If you have nowhere to turn, we will help you get out of debt and make a life.
What You Can Do
- 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 have the opportunity to arrange for the return of a seized car if we file when the car is repossessed;
- get money taken involuntarily from you by bank levy or garnishments if we act quickly;
- 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 over an extended period (typically 5 years) while out of work or while your business has been shut down.
All in all, Chapter 11 Bankruptcy is a unique way to keep the lights on!
Robust Bankruptcy and Federal Court Law Firm
The quarantine and coronavirus have caused a massive downturn in the economy, forcing entire businesses to adapt to new, more complex realities. Thus, when a company’s debts get out of control, and there is not enough income to pay their bills, their owners usually have two options:
- close operations and announce the termination of activities;
- declare bankruptcy, try to reorganize, and continue working.
Don’t even think of the first choice: you have worked so hard and can’t just give up! Our professional team has helped numerous companies reorganize their debts, and we’ll help you get back onto the road to success.
Don’t allow COVID-19 to change your plans, entrust us, and choose Chapter 11 Bankruptcy to save the business.
Call us today at 714-795-2346 to set up a free evaluation.