‘2022 could be the year of financial reckoning’: Bankruptcies fell dramatically in 2021, but these challenges await

'2022 could be the year of financial reckoning': Bankruptcies fell dramatically in 2021, but these challenges await

The pandemic keeps grinding on, and the number of bankruptcies keep plummeting — at least for now.

Consumers who were over their head in debt and distressed businesses submitted 434,540 bankruptcy filings through September, according to a report on the federal court system from Supreme Court Chief Justice John Roberts.

That’s an almost 30% drop from the 612,561 bankruptcy cases filed at the same point in 2020. And even that number was also lower than the 776,674 bankruptcy cases filed in 2019, the report added.

Even before the pandemic, bankruptcy cases in recent years were already well off the high numbers during the Great Recession. There were approximately 1.6 million cases in the first nine months of 2010.

Most bankruptcy cases are filed by consumers, the report noted. Cases can give a person a fresh financial start after they enter a court-supervised plan to pay back creditors…

Continue reading

Leave a Reply

Your email address will not be published. Required fields are marked *