Chapter 11 Bankruptcy
Get the basics of subchapter 5 bankruptcy
Opening your small business was the fulfillment of a dream. However, the last few years have not been easy for small businesses in New Mexico and across the country. For many, business fell low and debt piled high. When the Small Business Reorganization Act went into effect in 2020, it established subchapter 5 as a…
Read MoreCan all businesses file Chapter 11 bankruptcy?
Many business owners believe that only big businesses can file Chapter 11 bankruptcy. This belief likely stems from the fact that when big businesses file bankruptcy, it usually becomes national news. It is not common to hear about a smaller business’s bankruptcy simply because it does not make it into popular news stories. While it…
Read MoreDebunked: Myths about Chapter 11 bankruptcy
Many New Mexico business owners pour their hopes, work and finances into their business. Running their business is not only a job but often a dream that they have had for a long time. Therefore, it is natural to worry when the business comes up against debt and financial challenges. Business owners have several options…
Read MoreHow does Chapter 11 bankruptcy work?
There are many different chapters of bankruptcy. The chapter that a debtor selects depends primarily on their individual needs and financial circumstances. One option that is available to both individuals and businesses is a Chapter 11 reorganization. So, what does this debt relief option entail? Who can file Chapter 11? While individuals and married couples…
Read MoreHow can bankruptcy help struggling restaurants?
This past year has not been easy on anyone in the business world. In particular, restaurants are facing some of the largest financial challenges, with difficulty paying rent, bills or suppliers, all while continuing to serve customers with a reduction in profits. When struggling with overwhelming debt, many restaurant owners fear that seeking debt relief…
Read MoreFive steps you must take in Chapter 11 bankruptcy
When business owners decide to file Chapter 11 bankruptcy, they suddenly have a lot on their plate. After all, pursuing debt relief on top of running a business can be complex. It is often beneficial to speak with a lawyer to understand all of the steps required of you when filing Chapter 11 bankruptcy, but…
Read MoreThe benefits of a debt workout rather than bankruptcy
When faced with debts you can’t pay, bankruptcy often seems like the only course of action. To be sure, bankruptcy is an excellent option to help you get out from under the crushing weight of debt. But there are other options. One is a mutually negotiated debt modification with one or more creditors. The exercise…
Read MoreWho has to pay off the debts after a divorce?
Discussing debt is one of the more tense aspects of a divorce. Who pays off which debt? If there are any assets, which ones offset the debt? New Mexico is a community property state. This means each partner keeps what they brought into the marriage whether it’s property, an inheritance or debt from, say, a…
Read MoreDavid’s Bridal files bankruptcy
Much to the chagrin of brides across the country, renowned bridal gown chain David’s Bridal recently filed for Chapter 11 bankruptcy protection on November 19, 2018. The company missed a large debt interest payment back in October, and announced the prospective bankruptcy shortly thereafter. The bankruptcy is not a liquidation, but a debt restructuring, and…
Read MoreMattress Firm files for Chapter 11 bankruptcy
Nationwide mattress retailer Mattress Firm recently filed for Chapter 11 bankruptcy. The filing comes amidst dwindling profits and increased competition from online start-up companies like Casper, Leesa, Saavta and Nectar. As part of the bankruptcy restructuring, the company plans to close 700 non-profitable stores across the country, focusing first in on those in close proximity…
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