Tag Archives: covid-19
Filing for Bankruptcy to Deal with Heavy Medical Debt
Medical debt is by far the leading cause of personal bankruptcy in the U.S. A 2019 study found that 66.5 percent of all bankruptcies were tied to health care costs. Subsequently, COVID-19 threw millions of people out of their jobs and saddled them with virus-related medical bills. With COVID-related medical debt totaling somewhere between $60 […]
COVID-19 Complicates Estimation of Future Income for Subchapter V Reorganizations
The Small Business Reorganization Act (SBRA) offers a simpler and more affordable alternative to the traditional Chapter 11 bankruptcy process, which historically has been of little use to modest-sized companies. The SBRA procedure, known as Subchapter V, allows such businesses to create three- to five-year repayment plans based their “projected disposable income.” However, the recession […]
Using Cramdowns to Advantage in Subchapter V Bankruptcy
Subchapter V is a simplified form of Chapter 11 bankruptcy that was created to make the reorganization process more accessible to small businesses. One advantage of Subchapter V is the reduction of a company’s debts through use of a procedure known as a cramdown. Subchapter V bankruptcy has become especially important during the COVID-19 pandemic. […]
