As a small-business owner, you may have been especially hard-hit by the recent global health crisis. When revenue drops unexpectedly, it can be hard to keep a small business afloat.
At Arkovich Law, we understand what you are going through. We are committed to helping you reduce your debts and regain control of your finances while keeping your doors open.
Our attorneys have many years of bankruptcy experience, including Chapter 11 cases of all types. One of our attorneys also has an MBA, and her on the ground experience has helped many businesses over the years get back on their feet.
The Small Business Reorganization Act of 2019, creating a new subchapter of Chapter 11 of the Bankruptcy Code, went into effect in February 2020. This new Act wasn’t caused by COVID-19, but the timing couldn’t have been better. The Act provides for more streamlined and less expensive small business Chapter 11 cases. The Act provides a way for small businesses to reduce debt and the cost of carrying that debt — while remaining in business!
What are the upsides of this approach? There are several: no creditor committee, only the debtor can file a plan, nor quarterly trustee payments, and no disclosure statement. These terms may mean nothing to the average business owner, but they mean everything to a bankruptcy attorney and can lead to a successful bankruptcy. This all means that a case can be resolved fairly quickly for small businesses trying to recover after we stop sheltering in place. It is not a personal bankruptcy for an individual, but rather a restructuring and elimination of certain debts for a business.
Our goal is to help our community not only survive COVID-19, but thrive in a new environment whatever that may look like.