As most of the country is experiencing the second round of coronavirus-related lockdowns, many Americans are wondering how COVID will affect the already stressed economy. While bankruptcy cases have slowed in recent months, most experts agree that the number of cases filed will rise significantly as we move into 2021.
Many Americans were able to make it through the first round of lockdowns this spring because of government stimulus checks, concessions from landlords, and forbearance from creditors. With no stimulus in the near term and lockdowns causing more businesses to drastically reduce hours or even shutter, it’s likely that many people will struggle.
Even with the downturn caused by COVID-19, there have been fewer bankruptcy cases in 2020 than in 2019 – there were 27% fewer cases in August compared to 2019. In all likelihood, the number of bankruptcy cases will likely skyrocket next year, possibly setting records. (more…)