How long will bankruptcy filings be down?
This press release from American Bankruptcy Institute is very interesting. It states that total commercial deposits in Chapter 11 for July 2021 fell 62% over July 2020. Total commercial deposits, however, decreased by 39% relative to the previous fiscal year. In July 2021, the total number of bankruptcy filings was 32,387, 24% less than in July 2020, when there were 42,865 filings. In July 2021, the total number of consumer files fell 23%. Amy Quacken, ABI Executive director, stated, “The efforts to Extensive federal Stabilization, Lender Abstention and Continued Low Interest Rates have kept struggling family and business afloat throughout the pandemic.”
It will also be interesting to observe the deposit rates after six to twelve months or when the “new Normal” is restored. Read more here: https://bankruptcyhq.com/
On another topic, the Wall Street Journal estimated that the federal government lost about $ 4.8 billion per month due to the freeze on student debt interest accumulation. The total amount could be as high as $ 105.6billion from April 2020 through the current extension period, which ends January 31, 2022. I remind everyone that a trillion is worth a billion.