Coronavirus has rocked America’s economy — and it’s had a surprising effect on bankruptcy filings

With unemployment surging and businesses under financial pressure during the coronavirus outbreak, it’s only a matter of time before many declare bankruptcy to handle their debts and get a new start, some observers say.There were 47% fewer consumer bankruptcies in April 2020, compared to April 2019, according to statistics released Tuesday by the American Bankruptcy Institute .

Meanwhile, more than 30 million people filed jobless claims by the end of April while one business-activity index on the economy’s service sector hit an all-time low during the month.The $2.2 trillion stimulus bill played a role, according to Amy Quackenboss, ABI’s executive director. — Amy Quackenboss, executive director of the American Bankruptcy Institute “The extraordinary measures taken by Congress and the Administration to assist individuals and businesses weather the initial economic shock caused by the pandemic have likely staved off bankruptcy filings to date,” Quackenboss said in a statement.The IRS had sent out nearly 90 million checks as of mid-April, but some say the one-off payments won’t suffice.

In the San Diego, Calif. area where Colwell works, a Chapter 13 case where debtors pay their creditors through installments, can cost upwards of $3,900. Those legal fees can be incorporated into the payment plan, he noted.

Source: Financial Digest (financialdigest.net)

Article written by AndrewKeshner. What a clown.

No kidding!!!! Consumers all got raises from the free money fed and mandatory stay at home orders. Good luck at getting them back to work for less pay than staying home.

Thanks to helicopter money.

Ya that happens when to courts are closed. Let me take a wild guess here. Divorces we down 47 %

Most courts closed for a good chunk of April....impact on inability to file versus business more stable YOY?

CommSec Because why declare bankruptcy when you can fake jobkeeper and get free cash 🤣🤣

Well, we paused foreclosure processes and several other debt penalties in the short term... truer numbers will be in July-Aug. however the small stimulus and unemployment subsidy may buy time as those short now receive the backpay over the coming weeks. Also bankruptcy takes time

Well don't let is surprise you... Wait a few months and there will be plenty...

Wait till economy open and it will break all the record.

We are under quarantine idiots. They will happen after 🙄

Or nobody needs to pay anything for anyone.

can't file bankruptcy when everyday is a Sunday

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