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Bankruptcy Filings Slowed in L.A. Last Year, But Experts Expect a Surge

Even though bankruptcy filings were down in Los Angeles County in 2020, financial experts expect to see a surge of bankruptcy filings in the next few years. The coronavirus pandemic and related shutdowns have forced many families and businesses into economic peril. Nonetheless, the number of national bankruptcies filed in 2020 was the lowest it has been since 1986. The number of bankruptcies filed last year was nearly 30% lower than those filed in 2019. 

Experts Expect Bankruptcies to Increase

One of the reasons bankruptcy filings may have been abnormally low in 2020 relates to the federal courts’ shutdown. During the beginning of the pandemic, many federal courts were closed for several months. Filing for bankruptcy is a complex legal process, and sometimes the number of bankruptcies increases well after a financial dip occurs. For example, the Great Recession started in 2007, but we did not see bankruptcy filings hit their high until 2010. We may begin seeing a surge in bankruptcy filings in 2022 and 2023. In financial downturns, businesses can try to survive for six to eight months or even up to a year before they end up needing to file for bankruptcy. 

  • In Los Angeles County, 19,186 people and businesses filed for bankruptcy in 2019. In 2020, there were only 14,180 total bankruptcies filed. 
  • In 2020, Los Angeles County saw 13,323 business filings for individuals. 
  • In Los Angeles County, there were 11,300 for non-business Chapter 7 bankruptcy filings in 2020 and 1,962 chapter 13 bankruptcy filings.

Even though only 4% of all bankruptcies filed in 2020 were from businesses, business bankruptcy filings significantly impact the overall economy. When business files for bankruptcy, employee layoffs and other cutbacks often occur. Many chain restaurants that have filed for bankruptcy have closed multiple locations. 

Are You Considering Filing for Bankruptcy in Los Angeles?

Are you one of the many individuals or businesses considering filing for bankruptcy in 2021? Perhaps you have been able to survive financially for the last tumultuous year, but now you are finding it more difficult, if not impossible, to pay your debts. We understand that filing for bankruptcy can be an intimidating process. However, it is worth taking the time to speak to a Los Angeles bankruptcy lawyer before you take any other action, such as working with a debt consolidation company. Debt consolidation companies and high-interest loans may seem like a less intimidating option, but they could have more negative consequences in the future.

Contact a Los Angeles Bankruptcy Lawyer Today

Dealing with financial stress can be extremely difficult. Whether you are an individual or business, filing for bankruptcy could give you the fresh financial start you and your family need. Contact the Los Angeles-based Bankruptcy Law Center today to schedule an initial consultation with one of our experienced lawyers. We will review your case and advise you of your best path forward.

See What Our Clients Have To Say

Yelp Review

Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
Yelp Review

Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
Google Review

Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

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Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

Google Review

Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
Yelp Review

Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
Facebook Review

Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

Yelp Review

Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
Google Review

Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

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Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

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