Are SBA Loans Dischargeable in Bankruptcy?
During the COVID pandemic, many small business owners obtained loans from the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program. Due to numerous factors, including but not limited, changes in the marketplace, inflation, supply chain issues, or simply the risks of running a small business, many of these businesses have failed […]
When Can I File for Bankruptcy Again?
One question, that we are receiving with increased frequency, is “can I file for bankruptcy again?” With the COVID pandemic over, and high inflation still affecting the economy, many debtors who have previously filed for bankruptcy have contemplated filing again. While wages have generally increased over the past few years, they have not kept up […]
I Made a Mistake, Can I Amend My Bankruptcy Petition?
When filing for bankruptcy, a debtor files a petition with the Bankruptcy Court that is approximately 60-75 pages and contains essential details regarding a debtor’s assets, creditors, income, expenses, property exemptions and other relevant financial information. This important information is required to be set forth in the debtor’s schedules and Statement of Financial Affairs form. […]
What Preferences Must be Disclosed When Filing for Bankruptcy?
Typically, prior to filing for bankruptcy, most debtors have already been struggling with debt for a year or more. During that time, while juggling which bills and creditors to pay, they may have made preferential payments to some creditors over others. A common form of a preferential payment is a loan repayment to a family […]
Bankruptcy Filings are on the Rise
On July 24, 2024, the Administrative Office of the U.S. Courts released statistics for bankruptcy filings for the 12-month period ending on June 30, 2024. Personal and business bankruptcy filings rose 16.2 percent during that period, compared with the previous year. According to the Court’s statistics, annual bankruptcy filings totaled 486,613 in the year ending […]
What Transfers Do I Need to Disclose When I File for Chapter 7 Bankruptcy?
Often, when we meet with potential new clients concerning bankruptcy, they focus their questions on their outstanding debts and monthly budget shortfalls. They also frequently ask questions about their current assets as well. However, they often fail to consider assets that they may have had in the recent past but possibly sold or transferred. These […]
The Supreme Court Rejects the Purdue Pharma Bankruptcy Settlement
It is rare that the Supreme Court takes a case concerning bankruptcy law. At the end of this term, the Court held that members of the Sackler family cannot be shielded from liability for civil claims related to the opioid epidemic and rejected a Chapter 11 bankruptcy plan that would have given billions of dollars […]
Struggling with an SBA EIDL Loan? What Are Your Options?
At the peak of the coronavirus pandemic, one of the generous stimulus programs that Congress created to help struggling businesses stay open was the Covid-19 Economic Injury Disaster Loan (EIDL) program through the Small Business Administration (SBA). Over the life span of the EIDL program, the lending initiative provided more than $390 billion in assistance […]
Debt Limits for Chapter 13 and Subchapter V Bankruptcy Cases Are Set to Decrease Without Congressional Action
In order to aid debtors and small businesses struggling during COVID, the debt limits for Chapter 13 and Subchapter V (of Chapter 11) bankruptcies in the Bankruptcy Code and Small Business Reorganization Act (SBRA) were raised by the CARES Act. The increased limits were then continued by the COVID-19 Bankruptcy Relief Act of 2021, and […]
What Is Consumer Debt in Bankruptcy?
When someone is struggling with debt, filing for bankruptcy may be the best option to get a financial fresh start. However, the type of debt that a person has may affect what bankruptcy chapter they are qualified to file for. Title 11 U.S.C. § 101(8) defines consumer debt as “debt incurred by an individual, primarily […]
