I came across a recent article on the South Florida Business Journal website about local business bankruptcies. The article caught my eye because as it reminds me that South Florida business bankruptcies continue as personal bankruptcies lag. This highlights that government programs seem to be helping individuals and families. For example, people are getting by from mortgage forbearance programs, stimulus checks, and eviction moratoriums. However, small business is struggling to keep their doors open.
The article highlights 5 companies. Two of the companies, Global Gems USA Inc. and Taharra Assets 5545 Inc. both filed for voluntary Chapter 7 bankruptcy protection. Under Chapter 7, these companies will sell their business assets to pay off creditors. Ted & Stan’s Towing Service Inc., Innovative Software Solution Inc., and Guilco Family Dental Inc. all filed voluntary Chapter 11 bankruptcy protection. Chapter 11 allows companies to reorganize and restructure its debts. Thus, allowing the companies to remain in business.
More COVID Relief
Currently, there is another round of COVID-related stimulus working its way through Congress. The original PPP program received its fair share of criticism. The rub was that it helped large businesses leaving too many small businesses in the dust. On the other hand, according to a survey conducted by CNBC, 63% of small business owners support President Biden’s stimulus plan. Hopefully, help is on the way before it is too late for more of our local businesses. Said differently, even though South Florida business bankruptcies continue there is good news on the horizon.
In the meantime, for those businesses who cannot wait, you have some options. It is best to deal with debt and creditors as early as possible. The sooner you address financial difficulties, the more options are available to you. Ultimately you may need a Chapter 7 liquidation or a Chapter 11 reorganization. But do not wait until that point to explore your options. Let’s talk about your business and your specific situation.