Small Business Administration (SBA) loans are no different than other debt and are dischargeable in business bankruptcy. An individual that has personally guaranteed a debt may also discharge an SBA loan. A misperception exists that SBA loans are not dischargeable. SBA loans are entitled to no special priority under the Bankruptcy Code. SBA loans are backed by the government so that when there is a default the loan is insured as to the bank that gave the loan to the borrower. Because the loan is insured, however, does not mean that the borrower cannot wipe it out in a bankruptcy.
Sometime in the not so distant future, the government shutdown associated with the COVID-19 pandemic will be over and businesses will start to re-open. In anticipation of this re-opening, businesses should use the time to prepare for the post-COVID-19 world by reviewing and updating their employee handbooks. The challenges presented by the COVID-19 pandemic will forever change the manner in which employers conduct business. Therefore, businesses must evaluate their operations to make sure they are prepared for a post-COVID-19 world.
I am often asked how I can be so optimistic when my job is working with people going through perhaps the most difficult time in their lives. It’s easy: my job is to make things better. I am a professional problem solver. Not only do I get to unburden my clients from overwhelming debt, but I get to them how to get the most out of the fresh start bankruptcy provides. Who hasn’t wanted a do-over? This time, with right mindset, wisdom earned from their experience, and God willing no unfortunate circumstances, the future is cheery.
If You Are Self-Employed or Have a Small Business, You Need To Read This:
Due to the current economic and social landscape caused by COVID-19, schools are closed, people are under quarantine, there’s a shortage of medical supplies across the country, and businesses (whether considered essential or not) have been forced to shut down their operations and lay people off. As I write this, a record 6.65 million peopled filed jobless claims in the week that ended on March 28 according to the Labor Department – doubling the prior week’s jobless claims of 3.31 million.
On January 7, 2020, Honorable Chief Judge Cecelia G. Morris issued an opinion that may offer an easier path to debtors to discharge their student loan debt. In Rosenberg v. N.Y. State Higher Education Services Corp. (Jan. 7, 2020), the debtor filed a Chapter 7 bankruptcy petition and received his discharge on July 26, 2019. Prior to the discharge date, the debtor filed an adversary proceeding to have his student loan debt declared discharged pursuant to 11 U.S.C. § 523(a)(8). In August 2019, the Debtor filed a motion for summary judgment.
Today, March 25, 2020, it appears that a deal has been reached between Congress and the Trump Administration, but the details have not been ironed out. On its face, the deal would provide direct payments of up to $1,200 to most adults and expand unemployment insurance. It also includes a $367 Billion Dollar program for small businesses, to allow them to pay employees who have to stay home due to the coronavirus pandemic.
The impacts of COVID-19 continue to change our lives on a daily basis. The response by the Federal and State governments has immeasurably changed the way we live and conduct business. Employers and employees alike share in the confusion and uncertainty in dealing with the present environment.
If you are an individual in need of a bankruptcy reorganization plan, you may be wondering whether you should be filing a chapter 11 bankruptcy case or a chapter 13 bankruptcy case. This blog will explore some of the differences between individual chapter 11 and chapter 13 bankruptcy and which chapter may be right for you.
People often think of taxes simply as money owed to the government and don’t put anymore thought into the unpleasant topic. There are many different kinds of taxes, most of which fall into a few basic categories: taxes on income, taxes on property, and taxes on goods and services. The government is creative on ways it can collect revenue and have found ways to exact a fee from most every aspect of our lives. For someone contemplating bankruptcy, what kind of tax one may owe, when it was first due, whether a return was filed, or when a return was filed, all make a big difference in how the tax is treated.
Having a civil judgment against you can serious financial consequences. First, civil judgments can be recorded as liens against any land you own within New Jersey. Judgment liens have to be satisfied before the property can be sold or refinanced. Second, judgment creditors can levy upon your personal property or bank accounts. Third, your wages can be garnished. Garnishment is when the Court orders your employer to pay a portion of your pay directly to the judgment creditor. These are just a few enforcement methods available to judgment creditors.