A Wave of Woe Awaits

It’s never good news when the bankruptcy business is booming.

- Christianna McCausland

As a bankruptcy attorney, Dennis J. Shaffer sees people at one of the most challenging times in their lives. And with the pandemic-hobbled economy, he’s getting busier. Take, for example, his client in the personal service industry (who, understandably, asked that their name be withheld).

It was almost a year ago, shortly after the coronavirus first landed on our shores, that the client started having trouble paying the business’ bills, including loan payments. “In January, I realized that the debt structure was increasingly tough to stay current with,” the client says.

The business was shuttered for three and a half months due to the non-essential business closure orders, then, once it reopened in July, it struggled with the shortened hours and lack of space to adhere to social distancing mandates. Working closely with Shaffer, the business owner opted to file Chapter 11. But the owner is still unsure how it will turn out.

“[The bankruptcy] has added to the uncertainty of tomorrow, because the virus is still with us and the fears continue,” the client admits. “Also, the notification of bankruptcy has caused a negative reaction with our clients. Employees, clients, friends, and family look at you differently.”