Printed from: AIS
  https://www.aisinfo.com/

Print Page
Print

 

3https://www.aisinfo.com/blog/2020/05/bracing-for-small-business-bankruptcies
Bracing for Surge In Small Business Bankruptcies
05/08/2020 04:00 PM Posted by: AIS

May 8th, 2020

Bracing for Small Business Bankruptcies Triggered by COVID-19​

The bankruptcy industry is bracing for a spike in small business bankruptcies triggered by the coronavirus pandemic and slow economic growth over the past decade. According to a poll by the U.S. Chamber of Commerce, more than 40 percent of the nation’s 30 million small businesses could close within the upcoming months. This crisis will affect our economy for years to come, as it is possible we might lose much of the small business sector.

The AIS bankruptcy database shows that the first quarter of 2020 yielded a 4 percent increase in commercial bankruptcy filings from the previous year. However, many of those filings were made prior to the pandemic in a healthy economy. Small Business owners are now waiting to find out if they will receive the federal stimulus aid prior to filing for bankruptcy.

Amidst all the chaos, the Small Business Restructuring Act (SBRA) can be a silver lining for small businesses. The new rules, known as Subchapter 5, and its amendments through the CARES Act offer the power of reorganization with simplifications to firms with up to $7.5 million in debt. According to a report from the Bookings Institution, this change alone means that Subchapter 5 could assist up to 70% of businesses that may file for bankruptcy. For more information and insights regarding expectations for small business and consumer bankruptcies, please join us for a webinar with John D. McMickle on Thursday, May 14th.

John D. McMickle, founding principal of North South Government Strategies, discusses where small business and consumer bankruptcy filings could be headed, as a result of the COVID-19 public health emergency.This webinar will focus on several key items for financial institutions including:

Projected bankruptcy filing volumes and trends

Details on the new Small Business Recovery Act (SBRA)

Important aspects of SBRA for lenders

Impact of CARES Act on consumer bankruptcy law 

The discussion will end with an open Q&A session with John, who served as Counsel to the Senate Judiciary Committee where he advised Chairman Grassley (R-IA) on an array of policy matters under the committee’s jurisdiction, including the last comprehensive re-write of the nation’s bankruptcy laws.

This event is free for all participants. However, registration is required.

Blog Search

Categories

Archives

202212December1
December 2022 (1)
202211November1
November 2022 (1)
202210October2
October 2022 (2)
202209September2
September 2022 (2)
202208August1
August 2022 (1)
202207July2
July 2022 (2)
202206June2
June 2022 (2)
202205May1
May 2022 (1)
202203March2
March 2022 (2)
202202February1
February 2022 (1)
202201January1
January 2022 (1)
202112December1
December 2021 (1)
202111November1
November 2021 (1)
202110October1
October 2021 (1)
202107July1
July 2021 (1)
202106June1
June 2021 (1)
202105May1
May 2021 (1)
202104April1
April 2021 (1)
202101January1
January 2021 (1)
202012December2
December 2020 (2)
202011November1
November 2020 (1)
202010October1
October 2020 (1)
202009September1
September 2020 (1)
202008August1
August 2020 (1)
202007July1
July 2020 (1)
202006June3
June 2020 (3)
202005May3
May 2020 (3)
202004April2
April 2020 (2)



All Content Rights Reserved , AIS
Captavi - SaaS CMS Platform ©