Rebutting the Presumption of Insolvency During a Pandemic
November 2, 2020
American Bankruptcy Institute
Types : Bylined Articles
As the COVID-19 pandemic continues to cause harsh economic conditions throughout the U.S., many companies face the difficult prospect of bankruptcy. Smaller businesses in particular have had to endure significant pain as a result of state-mandated closures, stay-at-home orders, public fears about the virus and tighter lending conditions. Certain industries, such as leisure, dining and travel, have been hit especially hard by the pandemic.[i]
[i] Brad Moon, “24 Bankruptcy Filings Chalked Up to COVID-19,” Kiplinger (Sept. 11, 2020), available at kiplinger.com/investing/601342/bankruptcy-filings-chalked-up-covid-19-coronavirus (unless otherwise specified, all links in this article were last visited on Sept. 24, 2020).
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This article was reprinted with permission from the ABI Journal, Vol. XXXIX, No. 11, November 2020.
The American Bankruptcy Institute is a multi-disciplinary, nonpartisan organization devoted to bankruptcy issues. ABI has more than 12,000 members, representing all facets of the insolvency field. For more information, visit abi.org.