As we weather the financial crisis brought on by the coronavirus pandemic, we are reminded of a child playing with dominos. Pre-COVID-19, a single business’s bankruptcy would put financial stress on its suppliers and in some instances its customers. Today, we see entire supply chains and segments of the economy collapse as soon as one link in the chain begins to wobble.
To some extent, we saw this same scenario play out during the Great Recession. However, that crisis was triggered by the implosion of mortgage-backed securities. The Federal Reserve was able to step in and shore things up before all the dominos fell.
Now, we are facing an unprecedented threat to every industry. There has been a sharp decline in demand across almost every segment of the economy, and disruptions on the supply side mirror it. The Federal government is pumping out cash, but until consumers can safely shop and travel, and afford to do so, things look bleak.
At Hanson & Payne, we are doing the best we can to help businesses in the Milwaukee area weather the storm.
Businesses Are Increasingly Filing for Bankruptcy
We have seen a significant uptick in the number of businesses considering filing for bankruptcy. Since our firm handles both Chapter 7 and Chapter 11 cases, we are well-positioned to help business owners evaluate their different options. We view ourselves as true counselors, not just paper-pushers, and we want our clients to know that they can rely on us to advise them. We are committed to helping Milwaukee area business owners do what is best for their business, not what is the easiest for us to manage from the legal perspective.
Because we really dig into our clients’ finances and care about their businesses, we have also been able to steer a lot of clients toward bankruptcy alternatives.
As we mentioned above, the Federal government, as well as the State of Wisconsin is pulling out all the stops when it comes to managing the financial aspects of this pandemic. There are new initiatives being announced almost daily, and we are keeping a close eye on programs we believe our clients could benefit from.
Some businesses may also be able to avoid bankruptcy and keep the doors open by negotiating a workout. Creditors are just as stressed as their borrowers during this difficult time, and are more than willing to be flexible. If your business is facing cash shortages and needs temporary or permanent relief from its creditors, we may be able to negotiate terms of forbearance or loan modification with your creditors.
Hanson & Payne’s well-established reputation as a bankruptcy firm that knows business is what drives businesses and commercial lenders from all over Wisconsin to rely on Hanson & Payne when they find themselves teetering on the edge. If you are in this situation, we are ready to help get you back on solid footing. Please contact our office today to schedule an initial consultation.