Bankruptcy filings leveled off last month, according to figures from technology company, Epiq. The company compiled filings through their AACER bankruptcy program which showed that in the month of August, 32,225 new bankruptcy cases were filed, including Chapter 7 and Chapter 13 consumer bankruptcy cases. This figure is down slightly from the 32,391 reported in July 2021.
Despite the fact that consumer bankruptcy filings have decreased, commercial bankruptcy filings have increased approximately one percent from July 2021 with 1,724 cases filed.
While bankruptcy cases were anticipated to go up due to the COVID-19 pandemic, the number of bankruptcy cases filed has decreased by 20 percent since the start of the pandemic. The U.S. Federal Bankruptcy courts reported the number of open bankruptcy cases decreasing from 989,214 in April 2020 to 786,059 in August 2021.
COVID-19 relief packages have kept many people in their homes and financially afloat at least temporarily, which could be why the number of new bankruptcy filings has been down. According to Epiq AACER, 291,863 new bankruptcy cases have been filed in 2021, compared to the 396,113 new filings made the previous year. This figure is a 26.3 percent decline from 2020 to 2021. Whether new bankruptcy filings will continue on this downward trend remains to be seen. As COVID-19 relief packages lapse, consumers may find themselves not able to remain financially stable, which could inevitably result in more bankruptcy filings.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.