What to Expect from 2021 Bankruptcies

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 Chapter 7 Bankruptcy: from 2020 - 2021


Despite a record year for jobs lost in 2020, Chapter 7 bankruptcies were 30% lower than they were in 2019. Although this had many economists puzzled, the explanation is becoming more clear. As a Professor at Harvard's School of Business predicts, many households found their savings at an all-time-low and could not afford the court filing fees that comes with filing for bankruptcy. 

With my experience as a bankruptcy attorney for over 22 years, this is very worrisome. When people are overwhelmed by debts and bills, they will often try their best to make payments, even if it means consolidating most of their income for this use. However, in many cases, this is still not enough and they will find themselves in even more debt than they were before. 

At the end of the day, bankruptcy is a financial planning tool that is available to the public to help them out of these difficult situations. In many cases, it is more effective to use the extra funds to file for bankruptcy as opposed to making a small dent in the debt owed. 




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