Chapter 5 Bankruptcy may be just the lifeline that troubled small businesses need.

Since I don't practice bankruptcy law, I am just now learning about the new Chapter 5 bankruptcy provision that went into effect February 2020.  Subchapter 5 is intended to be a simplified and less-costly alternative to a Chapter 11 reorganization. 

Chapter 5 is much like a Chapter 11, but there is no creditors committee. Effectively, it is a cram-down like Chapter 13. 

I still have to learn about how personal guarantees of business debt are handled because most of my small-business debt defense clients signed personal guarantees of the business's debt.  If creditors are allowed to bring action against the guarantors while the bankruptcy is pending it may be of little use.  We'll see. 

Here is a link to a bankruptcy law firm's explanation of Chapter 5. I am not associated with this firm, and I can't guarantee the accuracy of the. information given. Anyone interested in Chapter 5 should verify all information before acting upon it. 

https://rcbizjournal.com/2020/03/23/new-bankruptcy-law-could-be-a-blessing-in-upcoming-economic-blizzard/

Fears of "Death Trains" may support surprisingly robust COVID-19 car sales

There is speculaton that at least in some areas new and used car sales may be surprisingly robust even with business shutdowns and high unemployment due to the corona virus.  I totally get why people might get concerned commuting by train or bus before there is a vaccination for COVID-19. 

https://www.thetruthaboutcars.com/2020/05/death-train-vs-safe-car-sales-hypothesis-gains-new-evidence/