During these uncertain times of the COVID-19 pandemic, small business owners are freaking out. They are stressed out, scared and unsure of how they are going to continue to operate and be successful.
Our business contract lawyer can be a lifeline to your small business helping you to navigate the maze of business closures, defaulted contracts and emergency modifications to federal and state laws due to the pandemic.
If businesses have closed leaving you without a supplier of essential goods or services or if one of your best customers decided to close or retire rather than reopen, our small business attorneys in Columbia, Maryland know how to negotiate contracts, strengthen your business and increase your bottom line.
If you need to renegotiate your contract with suppliers, subcontractors, or customers because someone on your critical path defaulted on a contract, you may have to wait until debt collection is possible under pandemic related restrictions. If you have clients in other states, you have to comply with altered debt collection rules during the Covid-19 pandemic. Stimulus funds are for living expenses, and you may not take stimulus funds to cover client debt.
Corporate Lawyer Near Me
Our corporate lawyers in Columbia, Maryland can help you reorganize your corporation, renegotiate the terms of your contracts, and continue operating gainfully. Through Chapter 11 bankruptcy, you may be able to restructure your business, liquidate nonexempt assets, and extend the duration of your contracts and leases to lower your monthly payments. You may even be able to strip liens from your residence or business property. Our firm can
- Negotiate new contracts and renegotiate existing ones
- Draft and enforce non-compete agreements
- Negotiate or collect on breached contracts
- Have experience with government contracts
- Help you determine continuing viability of your company and a strategic exit plan if needed
Bankrupt Customers and Contractors
If you receive a notice that your client or a contractor has filed for bankruptcy, you may respond under the auspices of the U.S. Bankruptcy Court. The U.S. Bankruptcy Court is operating under the extended protection of the CARES Act.
To File for Chapter 11
To file for Chapter 11 business restructuring, you must have both personal and business checking accounts in a bank that is not involved in your debt reorganization. You have to pay your liability insurance at least 12 months in advance because insurance companies can cancel your business insurance when they find out you filed for bankruptcy. You may be able to return rental property to its owner and discharge the unpaid deficit on the lease or loan during your bankruptcy proceeding.
Removing Liens from Home
The Court can take a home equity loan used to finance a business off the deed to your home or motor vehicle. The bankruptcy court can discharge the unpaid deficit on the business loan as an unsecured loan. If you applied for the loan within the last 24 months, the judge has to decide if you had enough equity and income to repay the loan when you applied for it.
Jointly Owned Property
If you “jointly and severally” own property with business partners and one of you defaults on the loan, all the partners owe the outstanding balance. If one partner is insolvent, the others owe the debt. If you own property jointly with others, the court can sever your interest in the property and order the property sold.
Business Lawyer Near Me
For more than 20 years, our business contract lawyers have taken a personal interest in each and every client achieving positive outcomes from complex legal problems. Our small business attorney, thoroughly knowledgeable in all aspects of business law, can work with you, explain your legal options, make suggestions, and plan a strategy to help you meet and exceed your goals. Our business lawyer can represent you in the succession of a business or in complex civil litigation.
Law Offices of Marc A. Ominsky. Call our small business attorneys today at 443-539-8712 for a thorough and strategic assessment of your legal problems. Our law office is conveniently located off interstate 95 in Columbia, Maryland. It’s easily accessed from Annapolis, Baltimore, Rockville, and Frederick, Maryland. We are your small business legal lifeline.