The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law March 27th and is now considered yesterday’s news as we have come to realize that no amount of government stimulus will effectively bail out businesses and individuals affected by COVID-19. In my last blog I projected a significant increase in bankruptcy filings as a result of COVID-19 and social distancing measures. The past few months bankruptcy filings have increased with many large notable businesses making headlines: Tuesday Morning, J Crew, J. C. Penney, Neiman Marcus, Hertz, Golds Gym, 24 Hour Fitness, GNC, Tuesday Morning, Centric Brands, Bluestream Brands, just to name a few. Lost in the headlines are the small businesses that are taking advantage of the CARES Act’s temporary amendments to the Bankruptcy Code. One of the temporary amendments to the Bankruptcy Code, provides streamlined reorganization procedures for businesses with debt of less than $7.5 million.
