Over the past several weeks, many news outlets have reported that the number of bankruptcy filings across the country have fallen sharply in 2021. In fact, according to the data from the U.S. Courts website, a total of 434,540 bankruptcy petitions were filed in the United States between Sept. 30, 2020 and Sept. 30, 2021. This is 29.1% lesser than the 612,561 petitions that were filed during the same period in 2019–2020.
In Indiana too, the number of filings decreased. According to reports, there were 9,196 bankruptcy filings in the Northern District of Indiana between Sept. 30, 2020 and Sept. 30, 2021 as against the 11,465 filings in the previous year. That is a decrease of 19.8%. In the Northern District of Indiana, there were 5,865 bankruptcy filings in the same period of 2020–2021 as against the 7,541 filings in the previous year. This is a decrease of 22.2%.
What are the experts predicting?
As many people in Indianapolis may have already heard, experts are saying that this decrease in the number of bankruptcy filings is the lull before the storm that can be expected to hit very soon – in fact, as early as 2022. The main reason behind this increase, per the experts, is the financial upheaval that many people had to experience during the hardships that were brought about the global health crisis.
In fact, bankruptcy lawyers in Indiana too have predicted a similar situation. Currently, the Consumer Financial Protection Bureau’s new rules are in force, which does not allow mortgage companies to foreclose unless a borrower is at least 120 days behind on payments. This rule was implemented after the end of the eviction moratorium.
In the event that the rules are not extended beyond the New Year, bankruptcy filings are likely to rise as many people in Indiana and the rest of the country are still reeling under the financial hardships that they experienced since early months of 2020.
Have you assessed your financial situation?
After reading this blog post, many people many start pondering on their own financial situation. A good place to start a serious evaluation in this regard is to seek advice from an experienced bankruptcy attorney who can provide personalized attention to your case. The reason this is a good first step is because bankruptcy proceedings are governed by a complex array of federal laws and a lawyer is often is the best equipped person to guide someone through the entire bankruptcy process.
As one may hear from various quarters, bankruptcy forms are easy to obtain and the temptation to go about the filing solo is often high. However, the fact remains that without proper guidance, the process may prove to be overwhelming for many people. Therefore, it may be a wise decision for someone planning to file for bankruptcy to retain a lawyer.