Although no one could have predicted the Covid-19 pandemic, its impact on small businesses in Northern Arizona has been particularly startling. As the only state-certified bankruptcy specialist in Northern Arizona, I have already received a number of calls from businesses struggling with how best to respond to this recession.
In the past, for small businesses, a bankruptcy “cure” was often times worse than the debt “disease.” However, the recently passed Small Business Reorganization Act (SBRA), which became effective on February 20, 2020, was aimed at simplifying the bankruptcy process for small businesses (which correspondingly should lower the cost). Additionally, the CARES Act, passed by Congress in response to the Covid-19 pandemic, has opened up the SBRA relief to more small businesses than ever. Those two new laws combined should provide greater relief to businesses and allow a simpler, faster reorganization through the bankruptcy process. If your business is struggling to figure out how to weather this recession, a bankruptcy reorganization could be the best solution. To schedule your free one-hour consultation, call attorney Aubrey Thomas at 928-233-6800.
*Disclaimer: The information contained in this article is for informational purposes only and is not legal advice. Legal advice should take into account the specific facts of your situation. You should seek professional legal counsel before acting upon any of the information contained in this article.