Imagine how your life would change if you could wipe away your debts. No more harassing phone calls. No more worries about garnished paychecks or the repo man. No more sleepless nights.
The definition of a Small Business in a Chapter 11 is one where the debts don’t exceed about $2.5 million (currently $2,566,050). The debt limit excludes amounts owed to persons considered “insiders” such as stockholders and/or family members.
Working but living paycheck to paycheck? Have you fallen behind on your house payments or let other bills slide? You are not alone. A recent study shows that 60 percent of American households cannot absorb a $500 unexpected expense.
First of all, there is no Chapter 20 in the Bankruptcy Code. The term “Chapter 20” is a shorthand term where the individual or married couple has filed a Chapter 7 and shortly thereafter filed a Chapter 13.
2020 has been a particularly difficult year for many businesses throughout the United States due to the coronavirus pandemic. According to Yelp.com’s Local Economic Impact Report, over 97,966 businesses have permanently shut down during the COVID-19 pandemic. If your business has been affected by COVID-19 closedowns, or you have incurred personal debt due to other burdens to keep your struggling business afloat, filing for bankruptcy may help you find the financial relief that you need.