New Jersey Lawyers BlogThe Small Business Reorganization Act and Subchapter 5 Bankruptcies
Hi, I’m Rob Chewning. I work with the firm of McLaughlin & Nardi, LLC. At the firm we practice several different types of law, including bankruptcy law. I am here today to talk to you about The Small Business Reorganization Act and Subchapter 5 bankruptcies.
As a result of COVID-19, millions of small businesses have been forced to shut down and cease business operations indefinitely with no end in sight. Some of these small businesses have tried to hold on in the hope of getting federal stimulus money that can carry them through this tough time. However, there are several million other businesses which will not be eligible or will not be able to get their hands on this federal stimulus money which is causing them to consider the options that they have.
Since the COV-19 outbreak began, more than 22 million Americans have filed for unemployment. The increase in unemployment filings have been the result of businesses of all sizes being forced to shut down entirely or significantly limit their operations. As a result, many people, both employers and employees, are seeing less income or no income at all while still being expected to pay their monthly payments such as rent, mortgage, car loan, credit card bills, and insurance. These financial obligations are especially devastating for people and businesses that were already having trouble making those monthly payments prior to the COV-19 outbreak.