As you may know, the COVID-19 pandemic has brought about an onslaught of bankruptcy filings throughout New York State, though perhaps surprisingly, there were not quite as many bankruptcy filings as there were in 2019. That being said, Chapter 11 bankruptcies, typically used for struggling businesses, were up around 13% in the past year. Please continue reading and speak with our knowledgeable New York bankruptcy lawyer to learn more about the 2020 bankruptcy trends here in New York State and how our firm can help if you are currently looking to file for bankruptcy.
Bankruptcy Trends of 2020
In New York State, over 20,000 bankruptcies were filed in 2020, and in Manhattan alone, nearly 900 individuals–not businesses filed for bankruptcy. That being said, nationwide, business bankruptcies comprised about 4% of all bankruptcies filed. Whether you are an individual who needs to file for bankruptcy or a business owner who is looking to file for bankruptcy, our firm can help.
There are two main types of business bankruptcy–Chapter 11 and Chapter 7. Chapter 7 bankruptcy, also known as liquidation bankruptcy, is where your business will be liquidated in order to pay as much of your debt as possible. As long as the process goes smoothly, you should no longer have to pay off all unsecured debts. The downside of Chapter 7 business bankruptcy, however, is that it generally ends with your business closing down. Chapter 11 bankruptcy, on the other hand, is designed to allowed business owners to restructure their debts, allowing them to keep their businesses running, pay off their debts, and become a profitable entity once again. If you are a business owner who believes either Chapter 7 or Chapter 11 may benefit you, give us a call today.
The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13. To file Chapter 7, your family income must be less than the average family income the county where you and your family resides, however, if successful, it should trigger an Automatic Stay on your home, allowing you to keep your home and many other assets, all while discharging most of your debt, such as credit card debt. Chapter 13 bankruptcy, on the other hand, will allow you to restructure your debt, similarly to Chapter 11. As long as you can pay back your creditors within 3 or 5 years, you should be allowed to keep all of your assets and move on with your life. If you have any additional questions, give us a call today.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.