The life cycle of a particular business continues smoothly because of three things: a sufficient number of patrons, successful business plans, and resourceful leaders. If a part of the system—one of the key elements—falls out of line, the whole structure will also crumble. By looking at the current state of the economy caused by the coronavirus outbreak, some businesses are closing and suffering financial losses. When this unfortunately happens, entrepreneurs have to file for bankruptcy to courts and find proof of their predicament. With the use of these Covid-19 templates, business owners can comprehensively state the conditions of their company. Start reading this article to learn more about this useful document now.
FREE 9+ Covid-19 Bankruptcy Templates
1. COVID-19 Bankruptcy Intake Form Template
2. COVID-19 Bankruptcy Letter Template
3. COVID-19 Reduced Payment Request Letter To Your Creditors
4. Free COVID-19 Compassionate Write-Off Template
5. COVID-19 Bankruptcy Filing Moratorium
6. Bankruptcy Implications of the COVID-19 Template
7. COVID-19 Temporary Bankruptcy Law Adjustments Template
9. Impact of COVID-19 on Bankruptcy Court System
10. Bankruptcy Court Operations During COVID-19 Template
What Is a Covid-19 Bankruptcy Template?
When starting a business, entrepreneurs take the risk of borrowing funds and assets from various sources. Over time, the debt grows smaller as the company expands and gains more profit. With the right project management tools and proper implementation of business plans, a business can endure any form of disaster. However, despite the resilience of the company, some storms are tough to weather—like the Covid-19 virus infection. On the recent article released by Forbes on the economic casualty of the pandemic, it showed the list of major companies failing to continue making a profit. From retail stores to petroleum companies, there is no escaping the damages caused by the virus. By looking at the Covid-19 world map, people can recognize the effects done by the pandemic.
In this situation, business owners file for bankruptcy. By applying for bankruptcy, the entrepreneurs can either reduce or eliminate the current debts. Hence, a bankruptcy discharge. But the decision on the matter depends on the findings of the court. With that, a Covid-19 bankruptcy template focuses on the adverse results generated by the ongoing pandemic. The Covid-19 virus, which is more than the flu or cold, has profound effects on the economy. And by using this bankruptcy intake form template, the entrepreneur can effectively explain the situation.
How to Create a Bankruptcy Form to Address the Covid-19 Crisis?
As the number of Covid-19 deaths grows incessantly every day, many companies and individuals resorted to having work from home agreements. While the work from home proposal contends to be an excellent way to continue the operations of the business outside the office, it has some drawbacks. For one, the work from home schedule works best for companies that are not part of the manufacturing industry. Consequently, businesses with no means of carrying on the business plans will face difficulties, and eventually, bankruptcy. When that happens, businesses with impending credit have to file for financial loss. So, what are the steps in making a form to address the Covid-19 crisis?
1. List Down Necessary Information About the Business
When creating the bankruptcy document, you have to start by listing the important information about yourself and the company. Include the name(s) of the business(es) under your supervision, the bankruptcy chapter you have to file, employees with the work from home application before the filing of the bankruptcy, and credit. Additionally, you should list down the properties you own or rent. Be honest when writing the bankruptcy form. Some businesses that have lawyers ask the paralegal to do the legwork.
2. Gather Essential Details About the Claim
Since you are applying for bankruptcy in this pandemic, you have to provide proof of the situation. Essential documents can be profit and loss statements, marketing analysis, and financial reports. The court will decide whether the bankruptcy claim has validation or not. With that, the pleading party should show sufficient evidence.
3. Include the Summary of Other Debts
Besides the business debts and other expenses, you also have to show the other outstanding payments. Some of these other debts are utility bills, credit card obligations, personal chargers, and even child support (if married). Furthermore, government taxes can be a debt to have also. If you have ongoing medical bills, it can also be in the material. Do use the Covid-19 checklist to enumerate your current obligations.
4. Get the Additional Local Forms and Requirements
Using a work from home checklist, you can jot down the other requirements of the court. Every state has different local forms and supplementary documents. Make sure you have all forms to avoid going back and forth with the process. Comply with the requirements and contact your lawyer.
Is hiring an attorney necessary to complete my bankruptcy case?
At most, yes, you should look for a competent lawyer to handle the case. Finding a bankruptcy specialist attorney will help shoulder the challenges of filing claims on bankruptcy. Before enumerating the claim, you can send Covid-19 letters to respective partners or banks to inform them about the situation.
Who files for a proof of claim?
Creditors file for the document to receive the money or assets borrowed by the person or organization that filed for bankruptcy. The proof of claim contains the details of the declaration affirming the existing debts of the bankrupt business or individual. After looking through financial reports and income statements, the court will decide on the amount creditors would receive from the claim.
When I file a bankruptcy case, who will know about it?
Once you send the bankruptcy application form and requirements to the bankruptcy court, the case becomes a part of the public record. With that, any person looking for your enterprise will notice the case filed. Some details can be hidden from the scrutinizing eye of the public, but almost all the information on the company bankruptcy case is open for inspection.
Can I file the bankruptcy claim even when I’m at home?
Right now, the work from home arrangement is the new norm for many businesses and individuals. Even entrepreneurs who are on the brink of bankruptcy can apply for the work from home policy to their company structure. But if it still doesn’t work and business continues to crumble down, you can file for the bankruptcy claim at home.
Many factors affect the rise and fall of a company—some are easy to detect, and others quite difficult to grasp. For the most part, aspects that can be under the control of the business owner proves to help amend the situation. And then, there are some circumstances beyond the capabilities of the company. For instance, natural calamities and viral outbreaks will take a toll on the business operations and plans of the enterprise. Hence, the chances of getting through are smaller than expected. But even when the business experiences defeat, particularly bankruptcy, it can have other opportunities. After the harsh storm of uncertainties, the entrepreneur can still appear victorious again.