COVID Bill Shock: Even the Giants Looks to Bankruptcy
Post COVID Bill Shock
OK, so COVID hasn’t gone away, but the world has largely come out of our fox holes for better or worse. And as the world looks more like it did before the COVID tidal wave, many consumers are now reviewing their bank and credit card statements to figure out what financial recovery looks like for them. But they aren’t alone. Big businesses across the nations are starting the hit the reality of the impact of COVID on the their finances.
Big Business Bankruptcy
In recent weeks, a number of larger businesses have looked to bankruptcy. Some have filed, while others have been rumored of the anticipation to file for bankruptcy relief. Here are a few examples:
- Hertz car rental. In a less than glorifying news article, the Wall Street Journal publicized that Hertz paid out $16 million dollars in bonuses days before bankruptcy. Shouldn’t we all be so fortunate to get such big bonuses for tanking a business?
- Golds Gym. No surprise that closing virtually every gym in the country had an impact.
- JCPenney. It has seemed like JCPenney has been on its heels for some time. COVID was enough to push it over the edge to Bankruptcy filing.
- Neiman Marcus. Another clothing retailer, but serving a very different customer, Neiman Marcus filed for bankruptcy on May 7.
- J. Crew. The trend of clothing retailers filing for bankruptcy continues. J. Crew filed for bankruptcy on May 4, with $1.7 billion in debt.
So how does big business bankruptcy affect you?
On a day-to-day basis, big business bankruptcy probably does not affect you very much unless Neiman Marcus was your retail therapy. But I find that corporate bankruptcy sets a good example for consumers when consumers are evaluating their options.
You see, what I find is that while big companies can make decisions about their debt fairly objectively, when a person is considering their options for debt relief, they have a tendency to really personalize the decision. They may spend weeks, months, or even years wrestling with the decision before they take action. And they may internalize the decision emotionally as if filing for bankruptcy means they have failed. If it wasn’t clear before, COVID has certainly underscored the reality of a worldwide economy – that there is so much of our personal economy that is outside of our control. You could be bustin your hide 80 hours per week, saving money, doing all the right things but a big event in your life or in the world happens, and could wipe out everything.
So what do you do? Just like these businesses, you make an objective decisions about what is right for “your business.”
Can we help?
If you are trying to figure how what the right way is to get on track with your debt, give us a call for a complimentary consultation with an experienced debt-problem-solving attorney. We are different because we look at a variety of options to get your debt under control, in budget, and off your shoulders. So don’t wait, get a hold of what option is right for you today.