The COVID-19 pandemic claimed not only lives but also livelihoods. Many businesses and individuals are on the verge of bankruptcy.
Financial experts predict a “tsunami” of bankruptcies, but thanks to government assistance in the form of stimulus checks, loans to businesses and moratoriums on evictions, the big tidal wave has slowed down more than expected.
Lamar Hawkins, a lawyer at Guidant Law, tells ABC15 that he currently sees many small businesses filing for bankruptcy.
Enough to keep him at work 12-14 hours a day, and Hawkins predicted that a flurry of individual documents would follow.
One of his clients was motel owner Robert McDowell. McDowell owns the Canyon’s Motel in Meadview, Arizona.
The city is located on the edge of the Grand Canyon at Lake Mead.
“It’s going well with this place. It’s in a fantastic location,” McDowell said, adding that he bought it as an investment, with the aim of turning the motel around to become profitable and eventually return it. sell.
McDowell and his wife fell in love with the scenery and wonderful people in the community.
“We’ve doubled the business here. We’ve stayed people from 39 countries here from around the world because we’re just where the Grand Canyon ends, so they’ll go see the Sky Walk in the Hualapai nation,” McDowell said.
The motel was booked nine months in advance at the beginning of the year, but on March 15, 2020, the world, as they knew it, came to a standstill.
“Unfortunately, President Trump had to restrict flights from Europe and other parts of the world, and it was like putting down a fire hose. Everything just stopped cold,” McDowell said.
The Hualapai nation shut down its visitors and businesses shut down due to the COVID-19 pandemic. Governor Doug Ducey closed the Grand Canyon.
McDowell said the pandemic brought uncertainty and made him feel helpless as he could do nothing.
“Nobody wants to go bankrupt, but it’s really the last resort for anyone,” McDowell said.
“Bankruptcy was the last resort. There is all sorts of embarrassment and stigma attached to it,” he added.
McDowell decided to file because he said it was the only way he knew how to save his motel.
Thanks to a new law passed in 2020, he was able to make use of subchapter 5.
The law is a lifeline for small businesses trying to stay afloat. This is a way to repay your creditors over time, rather than giving up your assets immediately.
You can learn more about this in subsection 5 by clicking here.