If you are facing financial hardships as a result of unemployment, you are not alone. Across the U.S., many people are struggling with the loss of their job and their primary source of income. However, data shows that even though many Americans are facing financial hardships as a result of job loss and other serious challenges, fewer people in the U.S. have filed for bankruptcy in recent months.
There are a number of potential explanations for the decline in bankruptcy filings, such as people having more difficulty filing a bankruptcy petition due to limited access to public buildings as a result of pandemic-related precautionary measures meant to protect the public.
Reviewing data on the number of bankruptcies
According to the United States Courts, the number of personal bankruptcies over the course of a 12-month period that ended in June 2020 declined, even though the U.S. saw a significant increase in the number of workers who became unemployed. During the 12-month period that ended in June 2019, more than 773,000 bankruptcy cases were initiated in the U.S. However, these numbers fell to 682,363 during the one-year period ending in June 2020. In fact, this marks an 11.8% decrease.
Reviewing statistics on business bankruptcies
The U.S. Courts reports that the number of business bankruptcies over the course of a 12-month period that ended in June 2020 was almost the same in comparison to the previous year. During this 12-month timeframe, there were 22,482 business bankruptcy cases. Between July 2018 and June 2019, 22,483 businesses filed for bankruptcy protection.