Many business owners worry that one rough stretch could undo years of hard work. When bankruptcy becomes part of the conversation, fear often centers on whether the business can survive at all. Subchapter V of Chapter 11 bankruptcy was created with these concerns in mind, offering a streamlined option designed specifically for small businesses looking to restructure debt and continue operating.

Filing for bankruptcy can feel overwhelming on its own, but it can cause another layer of worry when someone else is involved in your debt. If you have a co-signer, you may wonder how your decision will affect them and whether your financial relief could create problems for someone you care about.

Financial stress can feel isolating, especially when you’re already dealing with uncertainty and overwhelming debt. In these cases, many people look to bankruptcy for breathing room, stability, and a way to move forward. However, when you hear that a bankruptcy case can turn into a lawsuit, it’s natural to worry that things could get worse.

A common question after wage garnishment is whether filing for bankruptcy stops it right away. The short answer is yes, in most cases it does. The moment a bankruptcy case is filed, an automatic legal protection known as the “automatic stay” goes into effect. That immediate relief is often a draw when someone encounters a reduction in their paycheck.

When a business or individual files for Chapter 11 bankruptcy, a common question is, “Who actually runs things now?” Under Chapter 11 bankruptcy, a debtor-in-possession is a role that blends business leadership with legal responsibility. Instead of relying on a court-appointed trustee right away, the debtor usually continues running the day-to-day operations of their business.

Choosing a way forward after financial strain can feel overwhelming, especially since options like individual bankruptcy often carry long-term consequences. Chapter 7 and Chapter 13 are the typical options when discussing individual bankruptcy. However, these chapters differ significantly in how they address debt, affect credit, and shape the timeline for long-term financial recovery.

When a company faces financial difficulties, the choices for addressing obligations can be limited. Depending on your situation, company restructuring outside of court can be a viable alternative to formal bankruptcy proceedings. This approach allows your business to address financial challenges more efficiently while maintaining operational control.

When a business faces mounting debt and dwindling resources, the first option many owners think of is bankruptcy. While bankruptcy can be an effective solution in some cases, it isn’t the only one available. In New York, an assignment for the benefit of creditors (ABC) can often provide a faster and more efficient way to handle financial distress.

Filing for bankruptcy provides debtors with a critical legal protection called the automatic stay. From the moment a bankruptcy petition is filed, this provision immediately halts most collection efforts by creditors. It prevents lawsuits, wage garnishments, foreclosures, and other actions that could worsen a debtor’s financial situation.

Filing for bankruptcy is a significant decision. While it can offer a fresh financial start, many individuals are concerned about the impact it will have on their credit report. One of the most common questions we encounter at Todd E. Duffy PLLC is, "How long will bankruptcy stay on my credit report?"