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