Business owners in the Reno area aren’t rushing to file for bankruptcy protection, but they’re beginning to ask their lawyers about the possibilities.
That’s a good thing, the lawyers say. Too often in the past, business owners have waited until they’ve watched all their assets — personal, sometimes, along with the business— dwindle away before they seek the shelter of bankruptcy.
Plus, it reduces the worry.
“The unknown is what is so scary for a lot of people,” says Tricia Darby, who practices bankruptcy law in Reno with her husband, Kevin. “We’re visiting today with smart people who want to understand what their options might be.”
Timothy Lukas, who specializes in bankruptcy as a partner at the law firm of Holland & Hart in Reno, says unknowns abound for business owners as a result of the freeze-in-place orders by state and local officials six weeks ago.
“There are still a lot of unknowns about when and how our local economy will emerge from the current financial crisis,” says Lukas. “The abrupt, system-wide disruption to the economy means business owners and lenders need to work out the problems they’re facing.”
The federal stimulus packages designed to help business weather the COVID-19 storm present even more issues to sort through.
“The current stimulus bills prohibit or limit relief if a business chooses to file for bankruptcy. Right now, all of the obligations and commitments for business owners remain in place,” Lukas says.
On the other hand, Darby says Congress opened the doors for more small businesses that are floundering as a result of the pandemic to reorganize under the protection of Chapter 11 bankruptcy protection. Some filing deadlines were extended.
But Lukas cautions that those measures are valid only for a year.
“If one waits too long to file for bankruptcy, it can be a disaster,” he says, recommending that business owners and their attorneys understand today what a bankruptcy filing could accomplish — or not — if there’s even a chance that a company will go under.
Chapter 11 bankruptcy filings — cases in which businesses try to regroup while they get their feet back underneath themselves — were declining in the region before the pandemic-related shutdowns. Last year saw 14 filings of Chapter 11 cases in U.S. Bankruptcy Court in Reno. That compared with 26 a year earlier.
Chapter 7 cases — the ones in which a judge oversees the liquidation of a business — totaled 566 last year. A year earlier, 1,133 of those cases were filed in the bankruptcy court in Reno.
Read more news about COVID-19 in Reno
Keeping their congregation united has been a difficult task for many church leaders, but Reno’s Living Stones has found a way.
Mantener a su congregación unida ha sido una tarea difícil para muchos líderes eclesiásticos, pero Piedras Vivas en Reno ha encontrado una manera.
About 200 teachers and education professionals gathered Aug. 6, 2020 to protest what they are calling unsafe working conditions.
OPINION: Few things about this year have been normal, and in some ways, the upcoming school year will be no exception.
Nevada lawmakers voted to shield certain industries from coronavirus-related legal liability and require hotels and casinos to enact worker protection measures after days of complicated negotiations.
The City of Reno issued 234 new business licenses during April, May and June — the period covering the worst of the pandemic shutdown.
Nevada lawmakers passed a bill on Wednesday to expand eligibility for unemployment benefits to workers who decide returning to their jobs amid the coronavirus pandemic is too…
Sin los pies en la tierra: Mientras los fideicomisarios votan para reabrir las escuelas, los educadores dicen que los planes no son realistas
Los funcionarios del distrito escolar del condado de Washoe votaron a favor de mantener su plan de reapertura, a pesar de la oposición del distrito de salud…
Washoe County COVID-19 case counts have reduced over the past few days, but still are at a seven-day moving average of 81 per day.
Teachers’ union files OSHA complaint against school district for unsafe work conditions; WCSD responds (updated)
UPDATED: The Washoe Education Association today emailed members that it had filed an OSHA complaint against the school district based on its reopening plans.