A flood of business bankruptcies likely in coming months

NEW YORK (AP) — The billions of dollars in coronavirus relief targeted at small businesses may not prevent some of them from ending up in bankruptcy court.

The number of business filings under Chapter 11 of the federal bankruptcy law rose sharply in March, and attorneys who work with struggling companies are seeing signs that owners are contemplating the possibility of bankruptcy.

Many businesses around the country remain uncertain when economic activity will be allowed to resume, potentially rendering any government relief money they get too little too late.

But a federal law that took effect in February gives owners a better chance of keeping their companies under Chapter 11.