My boyfriend and I own a sweet little café in a nice suburb of Chicago. We love our cozy oasis and after three years we have a good flow of customers. But the pandemic has worn us down. After the lockdown the guests did come back, but business got off to a rough start because of the rather cool weather. The summer has gone quite well now, but we're on the brink.

Day after day we wonder whether we should file for bankruptcy. The problem is that we took out a loan for our café back then. We're in a very good location and pay relatively high rent. The landlord can't lower the rent because he's losing rental income himself. Tenants can't pay anymore. Now good advice is hard to come by!

Filing for Bankruptcy: Advice Can Hurt, Too

We quickly found out that it's not good to ask friends and acquaintances for advice. Ask ten people and you get eight different opinions. In the end it only scared us. Researching on the internet doesn't make it any easier. There are plenty of sites with consultants who ultimately want a lot of money.

Exactly when you yourself have to watch every cent. If we could judge that the pandemic would be over in six months, we'd definitely still apply for an SBA loan. At least we'd try. A friend of ours did it and received $30,000. That clearly gets him through another difficult period.

So what to do:

  • Hang in there or give up?
  • Ask friends for a loan?
  • Ask our parents for help?

After all, this is a decision with far-reaching consequences!

Maybe We're Too Pessimistic About Filing for Bankruptcy

Sometimes we've already asked ourselves whether we're simply too anxious. Filing for bankruptcy is a decision with consequences. Maybe we should once more ask our suppliers for a deferral or an installment plan.

The only question is: what will the fall be like? Will infection numbers go up again? Will there be another shutdown? Continuing carries such high risks. In the end we're afraid of trading while insolvent. Because that is truly no minor offense.

If we get a mild fall and guests can still sit outside during the day, it's easier. Will people become more careful when they have to sit indoors? These are simply uncertain factors.

Nobody can help us with that. If we have to file for bankruptcy, we ultimately have to see it through and stand behind it ourselves.