Although the COVID-19 pandemic resulted in widespread financial uncertainty, Arizona saw a drop in bankruptcy filings in 2020 and early 2021. Phoenix Business Journal turned to Lamar Hawkins for insights on the state of bankruptcies in Arizona and what to expect in the coming months.
Lamar has warned of an impending bankruptcy tsunami for months, including in a Phoenix Business Journal interview in March 2020. It’s only a matter of time, Lamar says, but the tsunami’s arrival date has shifted due to stimulus checks. Additionally, the COVID-19 Bankruptcy Relief Extension Act introduced in the Senate could help could extend small businesses’ ability to get streamlined bankruptcy protections.
Although pandemic recovery may be uneven, depending on industry and business size, Lamar’s bankruptcy practice has been busy, working with manufacturers, doctors’ offices, industrial clients and a multifamily rental in addition to restaurant and hospitality clients. They, along with many other small businesses, benefitted from the creation of the Subchapter V 11 option for filing.
A highly regarded bankruptcy attorney who confirmed the state’s first Subchapter V 11 bankruptcy last year, Lamar assists clients with all phases of commercial and consumer debt workout and bankruptcy services. In addition, he serves as the chair of the Arizona Board of Legal Specialization’s Bankruptcy Law Advisory Commission.