The Kansas City Business Journal recently published an article on the factors leading to the uptick in commercial bankruptcy filings. Sader Law Firm Managing Member Neil Sader spoke to a reporter for the article titled “What you need to know as commercial Chapter 11 filings jump.”
Sader noted the number of loans, specifically SBA loans, during and post-pandemic as one of the main causes.
“As those business loans mature and come due, they can’t get refinanced for anywhere near what the old rates were,” Sader said in part. “So people are looking at whether they can extend their loan at the current rates. Bankruptcy can play a part in that.”
Sader also advocated for preparedness for business leaders and taking a proactive approach to early signals of financial distress.
“The biggest regret I hear from clients when it comes to bankruptcy is that they didn’t do it sooner,” Sader said. “… The biggest thing I can tell people is that the hardest part of the process is realizing you need help, picking up the phone and making that initial call.”
The full article can be found at this link. Please note, a subscription may be required. If you have questions about your financial situation, or are considering filing for bankruptcy, contact Sader Law Firm at (816) 561-1818 for a free phone consultation.