On March 27, 2020, the federal government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing relief to a wide array of individuals and industries. Included in the CARES Act were certain provisions related to the Bankruptcy Code. Of note, the CARES Act:

As businesses of all sizes braces for the impact of COVID-19 over the next several months, and possibly years, the rise of bankruptcy filings is inevitable.

The impact on small businesses in particular is likely to be devastating. While you may be familiar with traditional filings under Chapter 11 of the Bankruptcy Code, you may be less familiar with the recently enacted Small Business Bankruptcy Reorganization Act (SBRA), which was expanded in light of the COVID-19 pandemic.

As the COVID-19 pandemic marches on, more homeowners than ever are seeking assistance from their lenders.

After almost eighth months of dealing with the severe economic impact of COVID-19, it is not surprising that more and more businesses are turning to bankruptcy for relief. Commercial filings continue to rise as many government-backed programs expire and the lasting effects of COVID-19 take hold. For many corporate counsel, interactions with bankruptcy may be limited, but how you respond to a vendor, supplier, or customer bankruptcy after a filing can have a significant impact on your company’s ability to mitigate its losses and avoid liability.