As a bankruptcy attorney, most people think that I'm unbelievably busy right now. The pandemic, business closures, layoffs, changed work environments--all are believed to be triggers for bankruptcy filings. But a new report from U.S. Courts indicates that bankruptcy filings are at a historic low, lower than at any time since 1985.
Why?
No one is quite sure. The stimulus packages certainly helped, as did the foreclosure and eviction moratoria and increased unemployment compensation. But most analysts (including myself) believe that there is a tsunami of new cases that will be filed over the next couple of years as lenders resume collections and foreclosures, landlord resume evictions, and the economy adjusts to the new normal.