small business bankruptcy lawyer Archives - Peoria Bankruptcy Lawyer Charles Covey

Many Americans Lament Lack of Emergency Savings

May 20, 2021

Three quarters of Americans regret not having enough savings tucked away for emergencies, a widely shared sentiment especially in the wake of the pandemic. Having adequate savings for periods of unemployment or to cover unexpected expenses is something all too many Americans lack. Millennials and Gen Xers in particular have little tucked away in savings compared to people 55 and older, who have had more time to set funds aside for emergencies. Even so, most savers often come up short; it is … [Read more...]

Financial Recovery May Include Bankruptcy Protection

April 23, 2021

A common misconception is that bankruptcy is a result of poor financial decisions when more often than not, bankruptcy is caused by unfortunate circumstances outside of our control. A job loss, divorce, unexpected medical bills, or as we've seen recently, a global pandemic, can all wreak havoc on individual or family finances, leading many to consider bankruptcy protection as a strategy to get back on their feet. It is estimated that between 800,000 and 1.5 million Americans file for … [Read more...]

Business Owners Struggle to Pay Rent Amid Covid-19 Restrictions

January 22, 2021

Despite stimulus payments to cover the costs of payroll for small businesses across the country, many business owners have struggled to pay rent on commercial property leading tens of thousands of small businesses into bankruptcy. Although landlords have shown some flexibility during the pandemic, it has not been enough for many businesses owners who fallen helplessly behind on rent forcing many to consider bankruptcy protection in the aftermath of Covid-19 closures. Of course, this also … [Read more...]

Pandemic Relief Bill Falls Short for Many

January 14, 2021

The new $900 billion Pandemic Relief Bill will include enhanced unemployment benefits and direct cash payments, which many Americans desperately need as closures and restrictions related to Covid 19 continue. Although many were hoping for more, as it stands, eligible individuals will receive $600 in direct stimulus payments and families will receive additional funds for children if their adjusted gross incomes do not exceed the threshold. For the many Americans who are out of work, a $300 … [Read more...]

Small Business Reorganization Act of 2019

October 28, 2020

There is no doubt about it, Covid-19 has wreaked havoc on small businesses across the country. Sole proprietors, main street businesses, suppliers, and other small businesses have had to get creative to stay open with many exploring Chapter 11 bankruptcy to reorganize as they weather the storm. With a Chapter 11 an individual or business can propose a reorganization plan, which may include downsizing to cut costs and renegotiating debts so they can remain open. As long as the plan is … [Read more...]

Small Business Bankruptcies Increasing

September 29, 2020

Reduced consumer traffic has many retailers, restaurants and other small businesses considering bankruptcy protection as they try to ride out the Covid-19 storm. A Chapter 11 bankruptcy allows business to reorganize their affairs, debts and assets providing needed time to rebound following the unprecedented impact many have experienced as a result of the pandemic. Although a number of businesses have filed for bankruptcy protection, the total number of business bankruptcies is actually … [Read more...]

Individual and Business Bankruptcy Resulting from Covid-19

April 23, 2020

Many predict that the widespread shutdowns related to Covid-19 will result in a record number of bankruptcy filings, both personal and business. Despite the Paycheck Protection Program (PPP) for small businesses and stimulus checks sent to individuals and families across the nation, many families and businesses are accumulating massive debt with limited resources flowing in. Over the next 12 months both personal and business bankruptcies may see a dramatic increase depending on how long the … [Read more...]

Chapters 11 and 13 Bankruptcy for Small Businesses

April 8, 2016

The popular teen clothing company PacSun announced today that it is seeking chapter 11 bankruptcy protection due to mounting losses and intense competition in the industry. PacSun said it would continue to operate all of its 600 stores and does not expect the bankruptcy filing to have an immediate impact on employees. PacSun plans to work on strategies to stay viable in a changing marketplace as they work through the bankruptcy process. Chapter 11 bankruptcy is intended primarily for the … [Read more...]