How will Coronavirus impact bankruptcy in Minnesota? Well, first off, the Coronavirus will cause a number of bankruptcies. Why? Have you seen pictures of the streets in Italy and China? They are virtually ghost towns. The American economy is driven by consumer consumption. It is something like 70% of our economy is driven by consumer likes you and I.
What happens when the scare of Coronavirus starts to take effect? People start to be more conservative in their spending. Why? Because they know this Coronavirus may impact the economy and their jobs so our immediate reaction is to be fiscally more conservative than before. If you are selling vacations or toys I feel bad for you.
Of course, when the Coronavirus actually comes to our neighborhood, you will see our malls and places of gathering dry up too. And the biggest question of all is not how many people may get infected or pass away, although that is obviously a very important question. But speaking about the economy as antiseptic as possible, the real question is how long will this consumer slump last? How long can a business survive if the store if the mall or business is virtually empty? The trickle down effects will be enormous.
Just think of a school closing down for 3 months. Now you have unemployed teachers, unemployed bus drivers, unemployed kitchen staff. Well if these people are not being paid or paid less than before, don’t you think that will affect their ability to spend money locally and nationally? Of course it will.
Finally, the bankruptcy process could be altered for a short term but will go back to normal when the crisis passes. For example, at Kain & Scott, we can conduct most of our business with the use of technology. Skype, Face Time, and the phone are our friends and we use them extensively even now.
CONCLUSION
When the time is right, or when you are ready, reach out to Minnesota’s OLDEST bankruptcy law firm at www.kainscott.com. You will be so happy you did!
