CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Business Bankruptcy Trends Ahead for 2021

business bankruptcy trendsBusiness Bankruptcy Trends

It should come as no surprise to anyone following the economic impacts of the COVID-19 pandemic that many businesses do not expect to make it through the end of 2021. Business bankruptcy trends will likely include a lot of companies filing in the upcoming year.

Many struggling businesses already and had filed Chapter 11 bankruptcy prior to lockdowns, but the last several months have pushed them over the edge financially. Others that were doing moderately well before the pandemic are now considering filing for bankruptcy in 2021. This is especially true for businesses that took on additional debt during 2020.

Economists consider this “in-between time” like the eye of a hurricane. Things might seem calm after a year of upheaval, but they expect rougher times ahead. They point to the volume of new debt accumulated during the pandemic by businesses. More debt means weaker businesses and weaker industries overall. Many will need to restructure in the coming months and years to give themselves even a slight chance at survival.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy involves the reorganization of a debtor’s business affairs, debts, and assets. Corporations use it most often, but occasionally smaller entities including individuals use it. It’s the most complicated type of bankruptcy and usually the most expensive.

To learn more about Chapter 11 bankruptcy law, check out this information.

The industries expected to be most affected should come as no surprise to anyone. Travel and transportation, energy, real estate, healthcare, hospitality, and retail have all been affected. There was already a big uptick in restaurant and retail Chapter 11 cases throughout 2020.

Business Bankruptcy Trends Include Problems Well Into 2021

Some are calling 2021 a year of “critical decision making” for businesses in the industries most affected by COVID restrictions. Many retailers even intend to use the cash brought in from end-of-year holiday sales to fund their restructuring.

Financial experts expect that businesses not relying on foot traffic, travel, or retail sales will also face a reckoning in 2021. The energy industry will face many changes in the coming months and years with ongoing efforts to reduce fossil fuel emissions. Traditional coal, gas, and oil companies will have less access to financing and will have to adjust or find a way to survive in an unfriendly market.

And though it’s booming now, the real estate market should see a downturn as the difficulty in other industries will eventually affect it too. Additionally, the shift to working-from-home will continue to impact the commercial real estate market well into 2021 and likely beyond. Although many companies say they will move back into their offices once the pandemic passes, many are expected not to.

How Will Commercial Bankruptcies in the Coming Year Affect You?

Business and commercial bankruptcy is much different than personal bankruptcy, especially Chapter 7. But the two affect one another. Changes in the economy affect individuals and have a significant impact on the job market. It’s likely that as businesses struggle and turn to reorganization, there will also be an uptick in personal bankruptcies.

If you’ve already been affected by the changes that occurred throughout 2020 or you want to speak to someone about what you can do now to protect yourself from increasing financial challenges in the coming year, we can help. Contact the bankruptcy law firm Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

5 Things That Boost Your Credit Score

Your credit score has a major impact on your financial life. You can be a great person with a bad...
Read More

How to Correct Errors on Your Credit Report after Bankruptcy

How do you deal with errors on your credit report after bankruptcy? In a perfect world, you could ignore your...
Read More

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions