Q: When it comes to the economic strain caused by COVID-19, what are some basic things I should know about business bankruptcy?
Advice: The first thing you should know is that there are many options available for a company that has economic issues as a result of the COVID-19 pandemic. There are multiple loan programs through the federal government; there may be some rent relief that can be obtained as a result of the terms of your lease; and there may also be settlements and forbearances that can be received from your vendors and landlords.
Depending on the nature of your business, it is always preferable to avoid bankruptcy. However, if bankruptcy is your best alternative, bankruptcy attorneys can use their extensive experience to help businesses navigate the issues that are raised in a bankruptcy. Depending on the size of your business, Congress has made some changes to the Small Business Bankruptcy rules, which could be beneficial to you. When properly planned and implemented, bankruptcy can be an effective way to help a business overcome financial difficulties.