By many measures, the pandemic induced all sorts of financial stress last year. But consumer bankruptcy cases — a way to address financial pain and deepening debts — plummeted in 2020.
Unemployment rates have been improving from their double-digit numbers in the early spring, but last month marked the first drop in jobs since that rebound started. The jobless rate in December was 6.7%. Meanwhile, household savings rates keep dropping nationally, and over one-third of people say they’re operating in financial “survival mode.”
“I think the depth and breadth of the stimulus packages are doing their job,” she said. State reopenings in the late spring and summer might have staved off or delayed bankruptcy for some, she added, and people may have kept holding off on filing because they were waiting to see what was in another stimulus package. President Trump signed a $900 billion second relief package late last month.
Kransdorf and his staff filed 100 cases last year, half the number of 2019 filings. He saw a small spurt in cases in the fall, beginning roughly a month after CARES Act money for supplemental $600 unemployment insurance ran out. But Foohey, who wasn’t surprised by the 2020 filing dip, said many people typically take several years trying get out of the red before resorting to bankruptcy. It took two years after Lehman Brothers’ 2008 bust for bankruptcies to reach a recent high of 1.59 million in 2010, case counts show. “People want to pay their debts, and they are eternally optimistic their financial situation will get sunnier,” Foohey said.
They will rise in the future after being bottled up from government delay
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Probably closely correlated to a drop in small business startups and reduced risk taking.
Yes, they must assume their responsabilities! We aren't kids!
95% only bad news(
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