As the global pandemic continues on with no immediate end in sight, many people may wonder how, if or when life may ever return to some semblance of normal. For people unable to work due to the current situation, they may be forced to rely on credit cards for their most basic needs, like groceries and household supplies.
Some experts believe that the nation may see an increase in the number of people needing debt-relief assistance due to the impact of COVID-19.
2020 bankruptcy filings to date
Forbes indicates that by September of 2020, overall filings for new bankruptcy plans are down from the previous year. Many factors may contribute to this, including consumers’ attempts to avoid filing for bankruptcy due to the belief that the pandemic may be short-lived and they can soon return to their jobs.
Other factors like federal and state assistance programs may have allowed people to make ends meet for a while, putting off the need to file for bankruptcy immediately.
The future view
Additional stimulus programs remain unknown, opening the door to more bankruptcy filings in the coming months. Some experts indicate the people who may seek this assistance fall outside the typical bankruptcy filer profile as they historically have paid their bills on time and be less likely to overspend and amass debt they cannot repay.
Changes to bankruptcy code may help
MarketWatch explains some calls for reform to the bankruptcy code have been made to make it easier for more people to get the help they need. Changes may involve exemption adjustments and more.