Scott Williams recently shared insights in the article “Helping Small Businesses Navigate Economic Uncertainty,” published in the July 2026 issue of the American Bankruptcy Institute (ABI) Journal, offering guidance to small businesses navigating today’s economic uncertainty.

Scott examined how “rising interest rates, trade tensions and political gridlock” have created a volatile 2026 economy. He noted that “total bankruptcy filings increased 14 percent in the first quarter of 2026, with subchapter V elections for small businesses surging 67 percent compared to the same period in 2025.”

Scott explained that small businesses face a distinct disadvantage in managing today’s economic challenges: “Small businesses, unlike high-profile corporations, often lack the resources to absorb these shocks. Early, proactive guidance from insolvency professionals can prevent financial challenges from escalating into insolvency.”

On the tools available to distressed businesses, Scott noted that subchapter V of chapter 11 “remains the most significant restructuring tool available to small-business debtors,” while cautioning that “the debt-eligibility threshold… has been a persistent source of uncertainty” for practitioners.

He also stressed the value of proactive planning ahead of potential restructuring. “For insolvency professionals, the pre-bankruptcy planning phase is often where value is created,” he said. “Practitioners who engage early and build a comprehensive financial picture before the petition date are far better positioned” to meet compressed restructuring timelines.

“With professional-led guidance, careful planning and proactive interventions, small businesses can manage risk, preserve value, and position themselves for growth despite challenging conditions,” Scott shared.

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