If your business was behind in its mortgage or lease due to the pandemic, the end of various eviction moratoriums could mean you should talk to a bankruptcy lawyer about Chapter 11.
The End of the Eviction Moratoriums
While the media tended to concentrate how the various eviction moratoriums affected the residential landscape, these moratoriums also affected commercial real estate. Any brick-and-mortar businesses that survived on foot traffic (small retailers, restaurants, etc…) suddenly found themselves in trouble. Income stopped, while expenses – including lease and mortgage payments – did not. While the PPP and other SBA loans helped, it was the state and federal eviction moratoriums that assisted businesses behind on their commercial lease or mortgage payments to stay in business and try to catch up. Those moratoriums are now over.
Signs Your Business May Be In Trouble
There are certain signs to look out for that your business may be in more trouble than you can handle:
Struggling with Mortgage or Lease Payments
Whether you own your building or are leasing space in one, the time where you could skip a few monthly payments is now over. So, what should you do? If you’re not too behind:
If you are leasing:
If you have a commercial mortgage:
However, if you are far behind on your payments, and you are hearing the words “eviction” or “foreclosure”, it may be time to look at Chapter 11 Bankruptcy.
Why Chapter 11 Bankruptcy May Be the Right Choice
While the world is slowing opening back up and people are shopping and dining again, it may take time to get your business financially caught up. Restructuring your businesses’ debt via chapter 11 bankruptcy can get you the additional time and space you need to get your business in the black again.
The moment you file a chapter 11 petition with the bankruptcy court:
As part of the process, you will need to show that given the ability to restructure and renegotiate your company debts, you will be able to pay back the majority of what you owe to your vendors, lenders, and or landlord.
There are also different variations of Chapter 11 bankruptcy you should know about – click here to learn more –https://www.ny-bankruptcy.com/services/bankruptcy-solutions/bankruptcy-chapter-11/
What to Do Next
It’s easy to easy to get confused and overwhelmed when you are trying to figure out the best thing to do for you and your business. If you’d like to talk directly to a compassionate, knowledgeable, human being, reach out to New York bankruptcy attorney Ronald Weiss for a free consultation. He can tell you which type of Chapter 11 bankruptcy is right for you, and help you get the process started. Call 631-271-3737 and take the first step to a fresh start.