Current Covid Cases and Deaths
This week Time magazine predicted that a wave of bankruptcy filings for small businesses will ensure following the recovery of Covid-19. The government’s attempts to provide relief for small businesses have been unsuccessful to say the least since their guidelines allow for major corporations to take millions of dollars from the fund. The program was replenished with a $484 billion bill passed through the Senate, yet many are skeptical that small businesses will find help this second time around.
Many restaurants and retailers have reported as the most affected by the shutdowns especially in large cities where independent or boutique businesses constantly fight against rising lease prices. Other companies and industries already headed for bankruptcy, such as oil, coal, and trucking companies, are unlikely to overcome the mounting debt from lack of business and sales.
Time reported how during the Great Recession, over 160,000 businesses filed for bankruptcy between 2008 to 2010 and an estimated 170,000 went out of business. These statistics were provided by the federal court system, yet it did not specify the size of the businesses. Depending on the size and debt, businesses can file for Chapter 7, Chapter 11 or Chapter 13. Although the bankruptcy courts’ doors are closed, staff are still operating remotely to keep cases moving through. Otherwise, the alternative would be a flood of cases overwhelming the courts when the shutdown restrictions are lifted.
Michelle Labayen has been practicing Consumer and Bankruptcy law for more than 16 years. She is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA), and the National Association of Consumer Attorneys ( NACA).
In addition, she is a Max Gardner Bootcamp graduate. Extensive experience has given Michelle a thorough understanding of bankruptcy, including:
In 2021, the Department of Education is going to reduce their 11 services down to 5 student loan servicers. According to Business Insider, the DOE outlined a plan to reduce their service in order to “better customer service.” Only 3 servicers of the original 11 will continue in 2021: Edfinancial, MOHELA, and Maximus.
We Are Living Through History. We are living through more human and economic devastation than recent memory.
We have less than 5 months to go before the presidential election.
It is expected that a conviction record should impact one’s bankruptcy case considering its effects on other matters. For example, a convicted felon can be denied the chance to apply for some jobs.
What is it? Where are we? Where do we need to go?
Back in 2018 nine teachers filed a lawsuit against Navient, one of the government’s student loan servicers for misleading borrowers or blocking them from accessing a public service loan forgiveness program. According to the New York Times, out of the 146,000 applicants to the program at the time, only 3,200 saw their student loans forgiven.
Anyone can qualify to file for bankruptcy. There isn’t an exact amount of debt or financial difficulty required. You don’t have to show insolvency or meet a certain standard.
You should always speak with a lawyer before beginning the bankruptcy process to ensure it’s the best option for you. Michelle Labayen is a knowledgeable and experienced bankruptcy attorney with offices in New York, NY, and Newark, NJ. Florida licensed attorney Drew Gaddis is counsel and would be representing all clients in Florida.
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