Reckoning day: Lawyers ready for tidal wave of bankrupt businesses

The federal government’s $2 trillion coronavirus relief bill kept many people and businesses afloat over the spring and summer. But with key components — such as the Paycheck Protection Program, increased unemployment assistance and a moratorium on evictions expiring or set to expire soon, a tidal wave of foreclosures and bankruptcies looms. 

The numbers are startling. In a survey, the U.S. Chamber of Commerce found 43% of small businesses expect to close permanently by the end of 2020. Meanwhile, the American Bankruptcy Institute reports that Chapter 11 commercial bankruptcy filings rose 48% in May over May 2019.