A recent article by Newsday featured Attorney Rob Solomon, who discussed possible reasons behind the low rate of business bankruptcies in Long Island.
In light of COVID-19 and its economic ramifications, many have expected bankruptcies to increase substantially as both consumers and businesses struggle with stay-at-home orders, business shutdowns, unexpected medical bills, and more. The CARES Act even modified the Bankruptcy Code to include modified (albeit temporary) provisions that are friendlier to small businesses.
As predicted, bankruptcy rates across the nation have risen—but not in Long Island. The Newsday article describes the Chapter 11 bankruptcy of Moustache Brewing Co. as one of the few on the island.
Attorney Solomon points to PPP loans as a potential source of income that has allowed businesses to survive this long without filing bankruptcy. He also explains that businesses may not need the courts to arrive at resolutions with landlords and other creditors. If a business can effectively negotiate and make fiscally responsible decisions, bankruptcy can be safely avoided.
For those who cannot arrive at beneficial resolutions with their creditors and lenders, bankruptcy may be the only viable option. With guidance from a seasoned attorney, however, this can serve as a fresh financial start during a tumultuous crisis.
Personalized Recommendations from Our Firm
Robert H. Solomon, PC understands that you, your family, or your business may be experiencing incredibly stressful times. Our attorney wants to use his decades of experience to help you develop a solution that addresses your unique legal and financial challenges. If bankruptcy is the right option, he can guide you through the entire process, advocating for your best interests along the way. If an alternative may provide greater benefits, he can help you weigh your options and achieve financial relief as efficiently as possible.
Call (516) 407-8199 or contact us online to request your free initial consultation today.