This year has been unlike any other, and it has lead to some unusual trends in bankruptcy filings. In general, bankruptcy filings have gone down in recent months. However, certain types of bankruptcies have grown more popular during this same span, and recent events indicate that these filings may continue to rise in the months ahead.
According to the U.S. Courts, when looking at all types of bankruptcies between March of 2019 and March of 2020, there has been a 1.1% decline in the number of cases filed. However, Chapter 7 personal bankruptcies, which are essentially liquidation bankruptcies for those with limited means, have continued to rise.
By the numbers
Between the end of March in 2018 and the end of March in 2019, there were 750,489 non-business bankruptcy cases filed in the United States. Within that same stretch of time between 2019 and 2020, there were 741,168 such cases filed.
When it comes to personal Chapter 7 bankruptcy filings, there were 477,106 of them between the end of March in 2018, and the end of March in 2019. Between March of 2019 and March of 2020, there were 479,211 Chapter 7 bankruptcy cases filed.
Because 2020 was a tough year, with many people across Kentucky and the nation experiencing job loss and other hardships, the number of Chapter 7 bankruptcy cases filed across the United States may continue to climb.
More information about trends in bankruptcy filings, and the number of cases filed from March through the remainder of 2020, should become available in the coming months.