Viewed by the U.N. as the most significant global crisis since World War II, and one that could lead the global economy to its worst performance since the Great Depression of 1929, the challenges to be faced as a result of the COVID-19 pandemic are diverse, among them the search for ways to mitigate its impact on business and those they employ. People are overwhelmed in debt and filing bankruptcy to get financial relief.
Companies already expect a significant increase in new requests for judicial reorganization, mostly small and medium-sized ones, which are the most affected by the paralysis due to their lower cash flow. The expectation for all states is to increase the adverse effects in the coming months.
As a result, a series of measures are being discussed and implemented to mitigate the pandemic’s impacts.
- to prioritize, in judicial reorganization and bankruptcy actions
- the analysis of decisions in favor of creditors or companies under reorganization
- to suspend the holding of general meetings of creditors in person while the pandemic lasts
- to evaluate with caution the granting of emergency measures
- eviction for lack of payment and acts of patrimonial execution
- in case any company fails with its reorganization plan due to the pandemic
- that the courts consider the situation as “fortuitous case” or “force majeure”; refers to an event outside of reasonable control of the debtor
If you are struggling to pay your bills during these trying times, contact a Dallas bankruptcy attorney to find out how you can get financial relief.