Minneapolis Bankruptcy Attorneys at Walker & Walker
Bankruptcy is a last resort, certainly, but it is a necessary evil when you are trying to get a fresh start and emerge from swallowing debt. However, the recent explosion of the coronavirus globally has some small business owners worried that they might have to lean on bankruptcy as their own option.
Why are bankruptcy cases increasing?
The impact of the novel coronavirus on the way that Americans work and live cannot be ignored. Everything has shifted into the virtual space; workers are meeting remotely and restaurants are offering online take-out orders only. Businesses that are conducted in the physical space have been essentially put on hold, and we don’t know for how long.
Imagine you are a ride-share driver. You’re not receiving any work because people are scared to go out or don’t have anywhere to go since non-essential businesses are closed. You’re also putting your own health in danger by continuing to pick up rides from people who may or may not have been exposed to the virus. For now, your income is at a standstill, and it isn’t like your bills are going anywhere.
Many people in this situation or situations like these are choosing bankruptcy in order to give themselves a clean financial slate. MarketWatch reports, “Bankruptcy experts agree, looking at a new spike in unemployment and remembering how the Great Recession caused a wave of bankruptcy cases from consumers seeking a reset after getting too far behind on debt.”
Why are small businesses under threat?
Small business owners have even more reason for concern. As Law.com notes, “Small businesses and big companies are faced with dwindling foot traffic, shorter hours and occupancy limits enforced by cities plus a slowdown in Chinese imports. They are weighing their options.”
It appears that small businesses are going to be some of the hardest-hit because many of them produce or sell items that are considered unessential at this time. Law.com writes, “A good rule of thumb is that businesses that sell necessities like groceries are more likely to retain good patronage…But those already struggling, such as retailers feeling the effects of e-commerce growth, could be seeking protection.”
If your business was struggling prior to the Covid-19 pandemic, or if you’re barely staying afloat now, it may be time to seek out an experienced bankruptcy lawyer, even just for a consultation appointment.
If you have bankruptcy concerns, who can help?
Bankruptcy lawyers and attorneys around the world have been picking up the slack. The Wall Street Journal writes, “They have been inundated in recent days by calls and emails from lenders about cash-strapped companies drawing down loans and fielding inquiries about whether their clients can get money under the $2 trillion emergency stimulus package.”
Fortune magazine agrees, “”Bankruptcy lawyers across the country and the world are preparing for an onslaught,” says Marc Levinson, senior counsel at the law firm Orrick.” Bankruptcy lawyers everywhere are stepping up and recognizing the part they must play in order for the business world to continue working as usual.
And bankruptcy lawyers are doing more to protect their clients from unexpected asset loss, cash deficiencies, and defaulting on loans. An experienced and trusted bankruptcy lawyer should be counseling you on all of your options as well as developing strategic plans for a variety of situations that could play out.
Here at Walker & Walker Law Offices, we pride ourselves on being some of the best-known and most-respected bankruptcy lawyers in Minnesota and the surrounding areas. We’ll work alongside you every step of the way, starting from our very first meeting.
Despite the current global disaster, Walker & Walker is still operating fully, albeit remotely. Cases can still be filed and are effective immediately. If you’re concerned about bankruptcy, don’t wait. Contact us for prompt, courteous answers to your questions about bankruptcy from our friendly, knowledgeable staff.