Sunday, March 22, 2020

Here's the problem:

If businesses like Hotels and restaurants keep employees they will go bankrupt. So, even though they want these employees back when they can open their businesses once again (whenever that is) they have to let them go this week or it could cause them to go bankrupt. So, many businesses deep in debt WILL go bankrupt during the next 3 months (All kinds of businesses having to do with travel and hotels and restaurants and tours and cruise ships and Airlines worldwide). So, without Federal help from whatever country they are tied to most all these businesses will be gone in 3 to 6 months without loans or other help.

But, bigger businesses that have kept a large enough cash reserve who didn't go into debt through all of this will be okay because their brick an mortar locations will be paid for, and if they let their employees go to fend for themselves through the government or new jobs then they can reopen in the future because they aren't so deeply in debt that they will be forced to file a Chapter 11 bankruptcy for their business or a Chapter 13 or hopefully not a Chapter 8 for themselves.  But, here's the problem: "You cannot file for Chapter 13 where you keep your home and car unless you are employed somewhere in the first place to be able to pay off 10 cents on the dollar all your bills over time." So, many many people might be forced to file Chapter 8 where basically they lose everything which is a horrific thing to contemplate too for the nation. Because there could be serious ramifications of millions of people filing Chapter 8 all at the same time for everyone sort of like homes being underwater like that.

So, hopefully they allow people to declare bankruptcy while collecting Unemployment compensation. I think this will be vital to pass something like this this year through congress so it doesn't cause a ripple effect through businesses nationwide of bankruptcies of companies from people not paying their bills because they don't have a job and declaring a Chapter 8 bankruptcies, millions of them nationwide from people laid off from hotels, restaurants and travel businesses and others temporarily shut down by government actions.

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