The economy has essentially been in freefall for weeks, and it is unclear when it is going to recover. While the economy always operates in waves, this has been a very quick decline, and it has business owners worried about what the future holds.
In fact, we’re at the point where some experts have noted that “a recession is inevitable.” It may feel like the United States just got out of the recession that began back in 2008, but now it looks like we’re headed for another one.
How many businesses are going to fail? Only time will tell. But with many of them already closed and others struggling to find customers, it is clear that the economic decline is going to have a massive impact. There are many companies that may find their financial resources cannot hold out until things turn around.
That, in turn, may lead to a wave of bankruptcies. In some cases, businesses will close their doors entirely. In other cases, they’ll seek to restructure their debt. Deals that looked great a few months ago, when money was flowing in, now may be unaffordable. That doesn’t necessarily mean that the business model is bad or that there isn’t a customer base out there, but it could mean that they need to seek a new arrangement to make debt affordable under this new recession.
This whole thing has come as something of a surprise, and businesses are struggling to adapt to their new reality. Those who need to explore their bankruptcy options need to know about all of the options they have for the future.