The U.S. economy fluctuates in response to various political, social, financial, and environmental effects. After World War II, for example, the economy thrived largely due to the Allies’ victory over the Axis powers and because the continental United States was never invaded or occupied. Today, we’re seeing the effects of the 2020 coronavirus pandemic on the economy. With hundreds of businesses forced to close during the shutdowns of the early pandemic and with many left without work, the U.S. unemployment rate rose 2.8% from January 2020 to January 2021. If you’re among those struggling to meet debts with a low income, you’re not alone. For those facing unmanageable debts, filing for bankruptcy is often the best solution during times of economic downturn. With Behm Law Group Ltd. attorneys, you can build a strong case for bankruptcy in New Ulm, MN, and the local regions.
We often work with individuals filing bankruptcy cases to either liquidate their non-exempt assets in exchange for debt discharge through Chapter 7 or to reorganize their debts into a manageable partial repayment plan through Chapter 13. However, we also have worked with many small sole proprietorship businesses that are able to file for Chapter 13 or want to file for Chapter 7 and close their business operations entirely.
Today, for either individuals or businesses, filing for bankruptcy may be the best way to grow and heal the U.S. economy at the municipal, state, and national levels. Stimulus packages have helped many businesses and households stay afloat during some of the most difficult times in the last year, but those packages and federal loans are not enough to stabilize things and prevent what could be an all-out long-lasting depression.
Throughout much of America’s history, failed small businesses were liquidated. While this may appear more logical than having the government and the American taxpayer pour billions of dollars to keep many struggling companies afloat, the fact is that allowing more bankruptcies during times of economic crisis has shown, on multiple occasions, to help the national financial system recover more quickly and avoid even more dire conditions.
The majority of U.S. businesses are not owned as sole proprietorships, which means that Chapter 11 reorganization bankruptcy is an available option that will prevent the company from having its assets liquidated. By allowing the reorganization of business debts through Chapter 11, companies maintain their operations. They continue to participate in trading goods and services and they continue to buy from other markets and pay their workers. Allowing more businesses to have access to bankruptcy will support the economy in this way rather than eliminating them as participants in the national economic system.
Additionally, allowing more people access to Chapter 13 bankruptcy means more creditors will be repaid at least part of what they are owed. It also means that individuals will still be allowed to use their discretionary income to act as consumers and participate more actively in the national economy.
If you’re considering filing for bankruptcy in New Ulm, MN, you may be able to play a role in supporting a faster recovery of the national economy. Contact Behm Law Group Ltd. by calling (507) 387-7200 or emailing stephen@mankatobankruptcy.com to learn more.
