The worst of the pandemic may be over, but many small businesses are headed for a reckoning.
As relief efforts like the Paycheck Protection Program (PPP) wind down, and state and federal protections such aseviction moratoriums begin to lapse, companies that may have been limping along oron the edge could soon topple.
Or as Bob Keach, head of Bernsteinshur’s business restructuring and insolvency practice, puts it: “Expect a total avalanche of bankruptcies soon.”
It sounds counterintuitive, but “filings tend to be at their highest during the early stage of the recovery,” says Keach. A bankruptcyfiling is effectively a court order that governs how an insolvent debtor, who can be a business owner or an individual, will deal with unp…
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