Wave of COVID bankruptcies has begun
A New Albany, Ohio, music school offering piano, guitar and violin lessons racked up under nearly $1 million in loans and $35,000 in credit card debt.
A fine dining restaurant in Providence, R.I., received more than $450,000 in federal small-business funds to help pay workers but still had to close its doors.
A nonprofit overseeing the Kit Carson Home and Museum in Taos, N.M., welcomes visitors to learn about the famous frontiersman but listed just $17,000 in assets even after every bone-handled knife, buffalo hide apron and flintlock musket had been tallied.
Nearly a year since coronavirusrelated shutdowns began affecting large swaths of the American economy, more businesses are filing for bankruptcy as Chapter 11 filings were up nearly 20 percent in 2020 compared with the previous year, court records show.
Data on a subset of businesses — those registered as corporations — show that some sectors are faring much worse than others, with restaurants, retailers, entertainment companies, real estate firms and oil and gas ventures filing for protection in far greater numbers than in previous years, according to New Generation Research.
Bankruptcies filed by entertainment companies in 2020 nearly quadrupled, and filings nearly tripled for oil and gas companies, doubled for computer and software companies and were up 50 percent or more for restaurant owners, real estate companies and retailers, compared with 2019, data from the research firm show. There were 5,236 Chapter 11 filings in 2019, but 6,917 last year, a tally at least 30 percent higher than any of the previous four years.
Economists are predicting strong economic growth this year overall. But the bankruptcy data show that despite $3.7 trillion in federal stimulus spending to combat the recession triggered by the pandemic, and another $1.9 trillion being proposed by President
ment personnel and perhaps with other owners who share your opinions. Ask questions and engage in meaningful and candid discussions about the issues you identified. It might turn out that your perception of what happened during the last election was based on misinformation.
You might also be able to discuss ways to ensure fair elections going forward.
Q: My husband passed away recently, and he had a will. I have been told that I need to have his will probated or possibly do a muniment of title. The only property that was in his name passing through probate is our home. Is there any way I can get around probate or muniment of title, because that will cost me a lot of money? With my husband passing, my income will be cut almost in half.
A: Some sort of probate proceeding will eventually be needed if you want to establish that you are now the sole owner of the home.
But you have at least four years after your husband’s death to probate his will. (You can even probate the will later than four years if you are not in default for doing so. Judges often allow probates to proceed after the four-year deadline.)
If you plan to live in the home until your death, you could simply do nothing. The fact that you never probated your husband’s will would become the problem of the people who inherit the home from you.
However, if you think you might want to sell the home (or refinance your mortgage, if you have one) at some point before you die, probating his will now would be the right course of action.
The information in this column is intended to provide a general understanding of the law, not legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@ lipmanpc.com