Question

As the global pandemic has not slowed with its spread, many business owners and individuals have considered filing bankruptcy. As part of the health and safety measures, courtrooms have been closed to slow or deter the spread of the virus. A small business owner and her business partner have decided to file bankruptcy as the pandemic has slowed business over the past three months laving uncertain of future business.

In evaluating a debtor’s petition, what factors should be part of a good faith analysis? Should consideration of the calculation of disposable income play a role? Why or why not?

Answer 1