Personal bankruptcies expected to rise in 2021 as stimulus ends
Bankruptcy filings have been kept in check this year by government stimulus and eviction moratoriumsAs stimulus checks and other forms of temporary relief run out, experts are projecting an increase in personal bankruptcy filings, which have so far been muted during the coronavirus pandemic.
Only a new stimulus program targeting individuals or government actions forgiving or deferring student loans can keep individual filings from rising, panelists said Tuesday at an American Bankruptcy Institute conference that took place online.The $2.2 trillion Cares Act that Congress passed in March broadened jobless benefits, extended their duration and boosted the amount by $600 a week—but those extra payments have expired.“I do worry about a flood of filings by working families,” said Deirdre O’Connor, head of sales and corporate restructuring at legal-services firm Epiq Systems Inc., speaking on the conference panel.
