Keeping a small business afloat through the ongoing Covid-19 pandemic is a daunting and difficult process. Decreased revenue, a shifting market, and deep drops in consumer spending across Minnesota have put business owners in the difficult position of having to address the fluid economic realities of a post-pandemic landscape.
A reduction in your in-person customer base, the difficulty of adhering to drastic public health needs and regulations, and the continuing costs of maintaining a place of business can all make business ownership seem impossible during this continuing pandemic.
Contrary to common assumptions, Chapter 11 bankruptcy can be a powerful tool in allowing your business to continue functioning even throughout the difficult economy brought on by the pandemic. Let’s take a look at some ways that having a small business attorney in Minneapolis can help your business survive.
The Advantage of Consulting a Chapter 11 Attorney
When facing the harsh realities of the current marketplace, you may be asking, “Should I close my business?” While the answer to this question will differ depending on the specific circumstances surrounding your business, contacting the local Edina business attorneys at Morris Law Group, P.A. is a useful first step in exploring all the options of how to allow your business to continue.
Options for Pandemic-Weary Businesses
One potential option for keeping your business viable is filing for commercial bankruptcy. A Chapter 11 bankruptcy is also known as a “reorganization” bankruptcy. Filing for this type of bankruptcy can allow your business to continue to operate and also to work toward reinstating profitability. Any stocks and bonds related to your business can continue to trade in securities markets, for example.
Whether or not the business owners ultimately decide to liquidate, reorganization bankruptcy can provide a potential lifeline to struggling businesses. Having a Chapter 11 attorney represent the interests of your business when filing for business bankruptcy can help ensure that you’re taking advantage of every financial option available.
Take a look at our bankruptcy division here for more information. Book your free consultation as well.
Filing Subchapter 5 Bankruptcy with an Edina Business Attorney
In addition to the typical advantages of utilizing Chapter 11 bankruptcy for the purposes of reorganizing a business in the hopes of regaining profitability, the Small Business Reorganization Act of 2019 (SBRA) provides the additional option of Subchapter 5 bankruptcy.
Business bankruptcies that file under subchapter 5 are given more flexibility regarding their financial options, as well as enacting the process on an expedited timeline. Additionally, the CARES act entails that certain payments to businesses related to the ongoing public health crisis will not be considered income for the purposes of the bankruptcy process.
And since the passage of the CARES Act in 2020, more small businesses than ever are eligible for the flexibility and expedited bankruptcy schedule provided by subchapter 5 in the SBRA. The logistical, technical, and legal challenges associated with reorganizing a small business by filing Chapter 11 or utilizing the tools provided in subchapter 5 by the SBRA can be overwhelming. However, contacting a small business attorney to help you navigate the process and ensure that you are utilizing every tool at your disposal to help your business survive in the pandemic is an important first step.
About Morris Law Group, P.A.
Integrity and trust is the foundation of our practice. Our passion for client success is matched only by our experience, our reputation for excellence, and our deep understanding of each and every client’s individual needs.
At Morris Law Group, we don’t just counsel our clients. We invest in them.
We’ve been serving the Edina and Twin Cities communities since 2002. Our attorneys provide personalized, cost-effective legal services to clients seeking help in real estate, business development, commercial litigation, and other matters.
Our experienced Edina attorneys believe that relationships matter, whether a client is trying to navigate a purchase agreement, get a business off the ground, or dissolve a partnership. Our lawyers appear regularly in state and federal court, in administrative hearings, and in various alternative dispute resolution forums, including mediation and arbitration.
Morris Law Group is the top Minnesota law firm for all of your real estate and business legal needs. We advocate for our clients with professionalism, vigor, and with a results-driven approach.
Let’s get started today! For more information or to book a free phone or video consultation, call 952.832.2000 or email email@example.com. You also fill out our confidential contact form.