A Real Alternative to Bankruptcy
If you are a small business owner or president, and are considering a Chapter 11 Bankruptcy, you should carefully review the changes in the newest law, which took effect on October 17, 2005. The law (BAPCPA) named “The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” has not only made it much tougher for consumers filing bankruptcy, but has also included several changes that are not friendly to small business owners.f you are a small business owner or president, and are considering a Chapter 11 Bankruptcy, you should carefully review the changes in the newest law, which took effect on October 17, 2005. The law (BAPCPA) named “The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005” has not only made it much tougher for consumers filing bankruptcy, but has also included several changes that are not friendly to small business owners.
A small business, under this bankruptcy law, is defined as any business with $2,000,000 in debt or less. Here are a few of the provisions that will make filing a Chapter 11 Bankruptcy much riskier for a small business:
- There are significantly more reporting requirements and additional paperwork
- Your books will be examined by the Bankruptcy Trustee to ensure your company has a plan to succeed. If the trustee determines the company does not have a good chance of surviving, he/she can move the case from a Chapter 11 to a Chapter 7.
- Sole Proprietors may now be forced to file bankruptcy protection as individuals if the bankruptcy judge determines that most of their debt is personal.
- The time period for a company to decide whether to keep or reject it’s non-residential real property lease changes to 120 days. Previously, filers could extend the current 60-day deadline many times, sometimes drawing out the process for year
Bankruptcy does not always mean a business owner can start over easily. When the courts get involved, the business owner usually ends up with nothing. It’s a heart-breaking situation considering an owner spends so much time and effort into making the business successful. Business Debt Settlement can keep a business owner out of court and in his or her office. Corinthos & Morgan knows and understands Business Debt Settlement and can help businesses in debt pay off creditors, who can make a business owner’s life miserable. With Corinthos & Morgan, a business owner can rest assured that Business Debt Settlement will help them get back on track again, and remain a viable contributor to the American economy.
In short, bankruptcy is now a less desirable option for many businesses that are burdened by heavy debt. The various disruptions placed on them by their creditors trying to collect are even more burdensome. Fortunately, there are alternatives for the small business owner to consider. The most effective one could well be an out of court debt relief program through Corinthos & Morgan.
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