Bankruptcy attorney Jeb Jeutter was quoted in the Triangle Business Journal on bankruptcy filings for businesses in North Carolina and potential concerns for businesses after the government’s eight weeks of PPP money runs out. In the article “In North Carolina, there's no wave of bankruptcies – at least not yet,” Jeb conveyed that the PPP money as well as the increase in Federal unemployment benefits did indeed give many businesses a lifeline and, therefore, bankruptcy filings were low.
“In fact, there were no Chapter 11 filings for the U.S. Eastern District of North Carolina in April and only six so far in May,” said Jeb. “It was presumed that there would be a huge increase in bankruptcy filings immediately upon entry of the stay-at-home order, and related restrictions.”
The article noted that cost could be a factor since revenue is down for businesses – Chapter 11 can cost more than $25,000.
“I continue to believe there will be an uptick in bankruptcy filings,” added Jeb, “but I am thinking more like third or fourth quarter.”
TBJ subscribers can read the full article here.
The Triangle Business Journal (TBJ) is the leading source of business news and events covering all industries in Raleigh, Durham and Chapel Hill, North Carolina and the surrounding areas. The Business Journals report on local and national issues that impact businesses and are a division of the American City Business Journals (ACBJ), the largest publisher of metropolitan business newsweeklies in the United States.