How Small Business Owners Can Get Rid of Their Debt
The Covid-19 Pandemic has created more “Alligators” than any business needs. Small Business Owners especially have been saddled with this “monster alligator”. Many are struggling to survive, wondering if they even will survive. It is a frightening time to be faced with the prospects of losing your livelihood and a business built over a period of years through the blood, sweat, and tears that it takes to own and run a business.
Most likely, the biggest problem small business owners face right now is the lack of cash flow to service debt for supplies, equipment, and maintenance. Worse, most equipment debt exceeds the value of the equipment. That means, the equipment cannot be sold for enough to pay the debt. It’s the classic equivalent of being upside down on your house, as many found themselves in the real estate collapse in 2008.
The answer lies in strategic planning, using the New Sub Chapter V of the Bankruptcy Code! Cash flow can be improved by reducing the debt to the actual value of the equipment. This can result in payment reductions of 50% or more. Moreover, if the business owner is struggling with house payments, because they used their house to secure loans to invest in the business, Sub Chapter V allows them to strip off that portion of the debt in a way that is not possible in other chapters in bankruptcy.
There are many additional cost saving advantages for entrepreneurs and small business owners. The new Sub Chapter V can turn disastrous circumstances into success and survival stores; not the least of which is quick, traversing of the process, absolute control, and successful transformation of the business as well as the owners’ lifestyle.
Remember, when a business survives, the owners keeps its livelihood and its business, employees keep their jobs and supports their families, and the public benefits from competitive services and products. Any business having cash flow problems should at least find out what the new Sub Chapter 5 can do for them. Without such assistance it can take years to heal the scars left on families and the economy.