A Wave of Small Business Closures Is on the Way. Can Washington Stop It?
Bipartisan proposals address weaknesses of a hastily passed aid program.

One of the great threats to the post-pandemic economy is becoming clear: Vast numbers of small and midsize businesses will close permanently during the crisis, causing millions of jobs to be lost.

The federal government moved with uncharacteristic speed to help those businesses — enacting the Paycheck Protection Program, with $669 billion allocated so far.

For debtors with high amounts of unpaid loans, paying off creditors using their savings is not the only option. In fact, borrowers who own valuable and nonexempt property may choose to file for a Chapter 7 bankruptcy. However, choosing this type of bankruptcy involves weighing both the financial and indirect costs on the part of the borrower.
The Indirect Cost of Filing for Bankruptcy

From: Kiplinger
By: Diane Davis, Contributing Writer
May 15, 2020

https://www.kiplinger.com/slideshow/credit/T025-S001-things-to-know-before-filing-for-bankruptcy/index.html

From: Time By: Melissa ChanMay 15, 2020

Every cent matters to Kim Jaemin, a cab driver in virus-ravaged New York City, whose diet has been reduced to instant noodles despite working 14-hour shifts, seven days a week.

Since the coronavirus pandemic emptied the streets of passengers, the 58-year-old from South Korea has been living on about $65 a day. He buys near-expired, discounted food that he rations to last the week. Two meals of the day consist of the cheapest brand of ramen noodles he can find. “Forget about nutrition,” he says.

One of the objectives of the Bankruptcy Code is to ensure that each class of creditors is treated equally. And one of the ways that is accomplished is to allow the debtor’s estate to claw back certain pre-petition payments made to creditors. Accordingly, creditors of a debtor who files for bankruptcy are often unpleasantly surprised to learn that they may be forced to relinquish “preferential” payments they received before the bankruptcy filing.

One of the objectives of the Bankruptcy Code is to ensure that each class of creditors is treated equally. And one of the ways that is accomplished is to allow the debtor’s estate to claw back certain pre-petition payments made to creditors. Accordingly, creditors of a debtor who files for bankruptcy are often unpleasantly surprised to learn that they may be forced to relinquish “preferential” payments they received before the bankruptcy filing.

From: Asian JournalMay 13, 2020By: Atty. Raymond Bulaon A LOT of people who are burdened with credit card debt often don’t know where to turn for help. They see all the ads on TV, internet, etc. by so-called “debt consolidation” or “debt settlement” companies hoping that this will get them out of debt without filing for bankruptcy. More often than not, however, they end up either getting scammed or disappointed when those companies cannot deliver the big promises made.

From: NY PostBy: Thornton McEnery May 11, 2020
https://nypost.com/2020/05/11/nyc-taxi-rescue-plan-calls-for-medallions-to-be-250000/

From: Kinston.com
By: Bob Montgomery
Posted: May 11, 2020

https://www.kinston.com/news/20200511/legal-experts-expect-personal-bankruptcies-to-rise-with-covid-19

Small Business Reorganizations under New Subchapter V of Chapter 11 of the Bankruptcy Code The purpose of this class will be  to discuss  the changes to the new Subchapter V of the bankruptcy code and its impact on small business reorganizations.On August 23, 2019, President Trump signed into law the Small Business Reorganization Act of 2019 (“SBRA”), Pub. L. No. 116-54 (2019).