When Should a Small Business File for Bankruptcy During the Pandemic?
By Hope Dean
As COVID-19 cases skyrocket, businesses’ coffers are plummeting.
More than six million people have filed for unemployment. Big-name industries like petroleum miners and internet providers are filing for bankruptcy. And while small businesses are being offered special loans and deals, it still may not be enough.
That’s why we talked to debt expert Steve Rhode about whether you should file for bankruptcy as a small business owner during the pandemic.
So should you file? Here are three tips.
Rhode would know about bankruptcy — he went bankrupt himself in 1990.
Now a financial journalist and self-proclaimed “Get Out of Debt Guy,” Rhode used to run a real estate company called the Great Virginia Land Company with three employees. But after the economy dipped in 1989, he wound up filing for bankruptcy and accruing more than $26,000 in credit card debt.
When Rhode got out of debt, he vowed to help others do the same. Here are three tips he has for small business owners considering bankruptcy during the pandemic.
