Lawyers expect tidal wave of bankruptcies due to COVID-19 pandemic

PHOENIX - With Neiman Marcus and J-Crew filing for bankruptcy, attorneys say this is just the beginning, of a tidal wave of bankruptcy filings due to COVID-19.

After closing up for a month, many businesses are seeing a lot more red than green. For some, the deadly new virus has left their finances in critical condition, and owners are being forced to make some painful decisions.

"It’s time to say goodbye to Barrio Café Gran Reserva," said Silvana Salcido Esparza, the owner of the restaurant, in a tearful Facebook video.

The restaurant is a victim of the pandemic, and Esparza had to make the tough decision to shut one of her restaurants down, in order to save her other restaurants.

Many business owners across the state are now analyzing their next move, whether it's to stop the bleeding, close shop, or file for bankruptcy.

"To determine if they have the customers coming back, long term revenue. Do they have the capital to get through the downturn?" said bankruptcy attorney Brad Stevens.

Stevens anticipates to see about three times the average number of businesses will seek bankruptcy protection.

"Maybe 25 or 30 Chapter 11s in a four-to-six-month time frame, versus, I think, 100s plus," said Stevens.

The next 30 days are going to be crucial for businesses, as they begin to slowly re-open. Stevens expects retailers, restaurants, and the airline industry are going to be some of the first businesses to file for Chapter 11 bankruptcy in the next 30 to 60 days, while many more, will end up closing their doors for good.

"Everyone is taking a wait-and-see attitude," said Stevens. "Can they work out arrangements with their creditors to avoid bankruptcy?"

LIVE: Interactive Coronavirus case data and map

FULL COVERAGE: fox10phoenix.com/coronavirus

FOX 10 is working to keep you up to date with local and national developments on COVID-19. Every weekday on FOX News Now, our live coverage begins at 7 a.m. MST reporting the latest news, prevention tips and treatment information.

You can watch live in your FOX 10 News app or on the FOX 10 Facebook page.

Get the latest coronavirus news by downloading the FOX 10 News App. Our promise is that our alerts are there to inform you - not scare you.

You can also get the latest coronavirus news from around the country at coronavirusnow.com.

COVID-19 symptoms

Symptoms for coronavirus COVID-19 include fever, coughing, and shortness of breath. These, of course, are similar to the common cold and flu.

Expect a common cold to start out with a sore or scratchy throat, cough, runny and/or stuffy nose. Flu symptoms are more intense and usually come on suddenly, and can include a high fever.

Symptoms of COVID-19 may appear more slowly. They usually include fever, a dry cough and noticeable shortness of breath, according to the World Health Organization. A minority of cases develop pneumonia, and the disease is especially worrisome for the elderly and those with other medical problems such as high blood pressure, obesity, diabetes or heart conditions.

Right now there's one big difference between flu and coronavirus: A vaccine exists to help prevent the flu and it's not too late to get it. It won't protect you from catching the coronavirus, but may put you in a better position to fight it.

To protect yourself, wash your hands well and often, keep them away from your face, and avoid crowds and standing close to people.

And if you do find yourself showing any of these flu or coronavirus symptoms - don't go straight to your doctor's office. That just risks making more people sick, officials urge. Call ahead, and ask if you need to be seen and where.

Why social distancing can save lives amid COVID-19 pandemic

Social distancing is not only about preventing the illness itself, but rather, slowing the rate at which people get sick. 

In order to protect yourself from a possible infection, the CDC recommends:

Avoid close contact with people who are sick.

Avoid touching your eyes, nose, and mouth.

Stay home when you are sick.

Cover your cough or sneeze with a tissue, then throw the tissue in the trash.

Clean and disinfect frequently touched objects and surfaces using a regular household cleaning spray or wipe.

Wash your hands often with soap and water for at least 20 seconds, especially after going to the bathroom; before eating; and after blowing your nose, coughing, or sneezing.