LOS ANGELES, CA, UNITED STATES, June 21, 2022 /EINPresswire.com/ — An anticipated rise in pandemic-induced Chapter 11 cases failed to materialize in 2021, thwarting forecasts by corporate restructuring professionals . Government stimulus programs, combined with low borrowing rates and greater debt tolerance, have disrupted early forecasts that a wave of corporate bankruptcies will end at some point this year. .
Charles W. Daff believes that although the massive bankruptcy of the business center has not materialized, companies are still preparing for possible financial problems. “Nevertheless, bankrupt companies and related professionals are preparing their staff for the possible economic downturn,” says Daff. “Big law firms are hiring senior attorneys and associates for their Chapter 11 practice.”
Instead, 2021 saw the fewest annual bankruptcy filings in nearly four decades, down 24% from 2020, which had seen the fewest bankruptcies since 1986. A total of 3,596 Chapter 11 cases were filed in 2021, around 3,000 less than the previous year. Some sectors, such as retail and healthcare, remain vulnerable as the pandemic continues to wreak havoc, supply chain issues persist and inflation rises, say bankruptcy practitioners and of recovery.
Daff continues, “On June 7, 2022, the House passed a bill increasing the debt ceiling for the Chapter 11 Subchapter V case to $7.5 million and in the same bill, the debt limit for small businesses and consumers has been increased in Chapter 13 to $2.5 million.The bill awaits the president’s signature.
But expectations for when the bottom will break down are tempered after a year of relatively low bankruptcies that rocked the restructuring world.
“The tsunami of bankruptcies has yet to register on the radar when all indicators predict it is just over the financial horizon. Like so many storms, you can never predict when it will will happen,” concludes Daff.
Charles W. Daff Professional’s office is located in Santa Ana, California. He proudly advises residents of Orange County, San Bernardino and Los Angeles. Daff, currently a Chapter 7 panel administrator in the Riverside Division with over 33 years of experience, represents clients in the United States Bankruptcy Court, Central District of California, in all of his divisions. He is a member of the California State Bar, Orange County Bar Association (and its Commercial and Bankruptcy Section), National Association of Consumer Bankruptcy Attorneys, Orange County Bankruptcy Forum, Inland Empire Bankruptcy Forum and the American Bankruptcy Institute, and the National Association of Bankruptcy Trustees. Orange County Weekly awarded Charles W. Daff 3 consecutive years as a bankruptcy attorney chosen as top attorney.
Daff’s proactive strategy provides legal services through a technology-based remote office, allowing them to serve more clients for less money. For attorneys and clients, the bankruptcy court has adopted video hearings or approved telephone appearances. Clients will benefit as they will be able to attend bankruptcy court proceedings remotely and easily.
Arrange a free consultation by phone (657) 218-4800 or online at https://www.ocbklaw.com/#consultation today. Decide the best course to take with Charles W. Daff from Chapter 7 to Chapter 13 to Chapter 11 bankruptcy.
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