It’s October 2020, and people are hurting. Financially, emotionally and mentally. It has been a trying year and now it’s almost finished and March, when all this madness first began, seems so long ago.
As a nation and a state, we were given an ample amount of financial help. Mortgages, loans, credits. Nonetheless, the time is fast approaching when that government-endorsed assistance will come to an end. Those methods and helping hands will start to expire and people, as a whole, will start to feel the pressure… even more than at present. This is a nationwide forecast and one most states and localities are preparing for.
This is the point when many, many, people will turn to Bankruptcy laws. Already, we are witnessing an uptick in Bankruptcy; many fields, that weren’t cushioned or swaddled by the many support systems the government erected during the COVID-19 crisis, fell through the cracks. Rent and eviction moratoriums were only in place for residential properties, not for storefronts, offices, or any sort of commercial property or non-residential lease. Restaurants, barbers, kiosks, real-estate agencies, and countless more have already struggled and been overwhelmed financially by the trials of this year.
That effect isn’t going to go away, on the contrary – because most assistance is coming to an end – it’s only going to grow and heighten.
2020 By The Numbers
According to business insiders at S&P Global – one of the leading consulting firms specializing in financial information and analytics – US bankruptcies are on track to hit a 10-year high due to the coronavirus pandemic recession. More than 424 companies have gone bankrupt through August 9th; surpassing the number of filings during any period since 2010.
From small mom and pop operations to huge billion-dollar multinationals, COVID slammed business and triggered a wave of bankruptcies across the nation.
The key to coming out, if not unscathed at least unbroken from such a punch in the gut as Bankruptcy is preparation. Bankruptcy in general is an incredibly complex, multi-layered legal process that varies enormously from one case to the other. It is a practice and series of actions that everyone has heard of but few, thankfully, have experienced its brunt.
A couple of months ago, I wrote an article/blog on the topic of bankruptcy. In that piece, you’ll discover a bird’s eye view of the intricacy of the process. The difference between insolvent and bankruptcy. The means of obtaining liquidity. The history of bankruptcy and what it means from a judicial point of view. The considerations when filling. The US Bankruptcy Code and its six types of chapters; each unique and specific to a particular set of circumstances and individuals.
Bankruptcy is an arduous, time consuming, emotionally draining, full of pitfalls process. A process swamped by trustees, adversary actions, alleges of frauds, motions, and thousands of other incidentals. Critical issues that if not taken into account before the first filling might deteriorate a debtor’s situation.
That’s why, as this year closes and we are coming face to face with the harsh realities and truths that back in March seemed far-fetched – after all we had a burgeoning and booming business, not to mention a stellar economy – it is imperative to plan ahead. Bankruptcy doesn’t come out of nowhere, it doesn’t sneak in. If you’re reading this, then by all accounts you’re researching the process because something isn’t quite right with your future financial perspective.
The best way to come out ahead of bankruptcy is to plan. To seek professional advice and help as soon as possible. The sooner the better. You are not alone. As I previously stated, 2020 has seen a huge mark-up in fillings throughout the states. Lord & Taylor, Century 21, Hertz, LATAM Airlines, Frontier Communications, Ann Taylor, J.C. Penney, Chesapeake Energy Corp., and a dozen more have had to file for bankruptcy. Thousands of brick and mortar multinationals that are on the brink of closing. And that’s just the newsworthy names, the multi-million dollar brands. Once more, you are not alone. 2020 has been a cruel year. There is nothing to be ashamed of. You will get ahead of it. You will survive. The key is to be prepared.
A lawyer is aware of all the inherent dangers and judicial perils that might pop out of nowhere at any given time. It is unadvisable to file for bankruptcy without an attorney-at-law. Finding a trustworthy attorney will not only provide you with expert advice but full representation during this economical crisis. Carlos Gonzalez Law (305) 205-5926.