Small Business Owners - Don't Freak Out

Small Business Owners:  Don’t Freak Out
            As the Covid pandemic continues to upend our lives, small business owners – restaurants, retail stores, small manufacturers and the like – are wondering how they are going to salvage their businesses when society is ready to reopen.  As a bankruptcy lawyer, I have already received several calls.  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:

1. Allows business to reopen and continue operations.
2. Applies to small businesses with debts of less than $7.5 million.
3. Allows business to reorganize, reduce, re-amortize or eliminate debt.
4. Extends tax debt repayment over a 5-year period.
5. Allows business to get out of unaffordable contracts and leases.