Small Business Owners: Don’t Freak Out
As the Covid pandemic continues to upend our lives, I have received calls from several small business owners – restaurants, retail stores, small manufacturers and the like – wondering how they are going to salvage their businesses when society is ready to reopen. My first response: Don’t Panic; Don’t Freak Out.
When you are ready to re-open, if you are way behind in paying your debts, you can seek bankruptcy relief under the Small Business Reorganization Act. Important points about the ACT:
- Allows business to reopen and continue operations.
- Applies to small businesses with debts of less than $7.5 million.
- Allows business to reorganize, reduce, re-amortize or eliminate debt.
- Extends tax debt repayment over a 5-year period.
- Allows business to get out of unaffordable contracts and leases.
If you want to learn more about a Small Business Reorganization, give me a call or send me an email. I don’t charge for an initial consult.
David B. Madoff
MADOFF & KHOURY LLP