Congress is Ignoring the Best Solution for Troubled Companies: Bankruptcy

(This op-ed was first published in Fortune on May 14, 2020.)

Can Bankruptcy Help Companies and the Economy Weather the COVID Crisis? with George Triantis

During the COVID-19 pandemic, Congress has moved quickly to get trillions of dollars of emergency relief to consumers, small businesses, and large firms. These efforts aim to rescue millions of American consumers and businesses from insolvency.

It is troubling, though, that the federal government is ignoring the law that already exists for cushioning the blows associated with financial distress: the bankruptcy system. In its strategy to provide relief and stimulus, the government is in effect offering roadside emergency assistance when the infrastructure and expertise of a hospital is easily accessible.

(Continue reading the op-ed on Foturne’s page here.)

George Triantis is the Charles J. Meyers professor of law and business at Stanford Law School. Jared A. Ellias is a professor of law at the University of California Hastings College of the Law.