There is no denying the impact the COVID-19 outbreak is having on the worldwide economy. As we all reel around a difficult financial time in this recession, many small business owners are asking how they can work through the devastating effects on the economy and come out on the other side as a still functioning operation. Many businesses may have even gone through the 2008 recession and found that there are some tricks to staying solvent. One option that’s always available to sole proprietorships and partnerships is debt relief through Chapter 13 bankruptcy. If you are struggling to meet debt payments in Pipestone, MN, during this time, Behm Law Group Ltd. can help you work through a Chapter 13 reorganization case to receive long-term debt relief that will likely support you to the end of this recession.
Even though we are at the beginning of what will likely be a long recession, it’s not too early to think about your options for debt relief, especially if you already have a difficult time meeting monthly financial requirements. While there are ways to protect your income and business operations during this time—protecting cash flow, limiting purchases, restricting your budget, and formatting marketing plans around the crisis—these actions are sometimes not enough. Many industries will be significantly impacted by the effects of the COVID-19 shutdowns, and amid such long-term desperation, filing for bankruptcy can be a rational, intelligent choice.
Chapter 13 bankruptcy can be filed if you or you and your business partner are personally responsible for business debts. This is often the case with small businesses because the cost of becoming incorporated typically outweighs the protection it provides. When you file for Chapter 13, your business debts and personal debts will be included together in a repayment plan lasting three to five years. This repayment plan will be overseen by a chapter 13 trustee and organized to fit your current financial situation.
If you are personally liable for your business debts, the only way you can keep that business running through a bankruptcy is to file Chapter 13. This process requires you to repay your priority and secured debts under adjusted terms that are more favorable to you. Also, your unsecured debts will generally not receive any interest and will typically only be paid a percentage of what you owed when your case was filed. While some might consider filing for bankruptcy to be a dramatic decision, the fact is that Chapter 13 bankruptcy helped thousands of small businesses weather the 2008 recession and emerge with their businesses still intact. Thanks to the help of Chapter 13 repayment plans, small businesses can work through this difficult time just as successfully as in the 2008 recession.
You don’t have to be one of the many small businesses that will sadly have to close doors within the next few years due to the financial stress of the coronavirus. Resolve your debts with Behm Law Group Ltd. today. Contact us at (507) 387-7200 or stephen@mankatobankruptcy.com for more information about Chapter 13 debt relief in Pipestone, MN.
